441.3 Impact of Trusts on MA Eligibility - General Policy

Trusts are revocable or irrevocable.

Revocable trusts are to be considered available.

Irrevocable trusts may or may not be available.

Payments from a trust may be available as income or resources or may cause a penalty period.

If the individual establishes a trust or transfers funds into the trust during the look-back period, the CAO may impose a penalty period for a transfer for less than FMV.

The look-back period for a transfer of assets into a trust is 60 months.

Miller Trusts are trusts funded solely with an individual’s income (such as a pension or Social Security benefits). Miller Trusts are not recognized in Pennsylvania as an income/resource exclusion. Treat Miller Trusts in accordance with the policy in Section 441.4 of this chapter.

441.31 Review of Trusts Impact on MA Eligibility by the Office of General Counsel

IMCWs should review any trusts received as part of an eligibility determination and make a decision based on all the available information. If a caseworker is uncertain about the decision or has any questions regarding the treatment of a trust in determining an individual’s eligibility for MA, the IMCW’s supervisor should contact the Department of Human Services (DHS) Office of General Counsel (OGC).

When contacting the OGC, the CAO should do the following:

When faxing, provide a cover sheet that explains who is the client and the date the client applied for MA
Provide a fully executed copy of the trust
Provide all information on the funding of the trust (dates funds were transferred, amounts transferred, etc.)
If the trust was established under a will, provide the date of the decedent’s death.

Use the following information to contact the OGC:

For CAO’s in the Western Region of Pennsylvania:

Office of General Counsel

Department of Human Services,

Piatt Place

301 Fifth Avenue, Suite 430

Pittsburgh, PA 15222

(412) 565-2557 (ph)

(412) 565-2489 (fax)

For CAO’s in the Central Region of Pennsylvania:

Office of General Counsel

Department of Human Services

Health and Welfare Bldg., 3^rd Floor West

625 Forster St

Harrisburg, PA 17120

(717) 783-2800 (ph)

717) 772-0717 (fax)

For CAO’s in the Eastern Region of Pennsylvania:

Office of General Counsel

Department of Human Services

801 Market Street, Suite 6092

Philadelphia, PA 19107

215) 560-2192 (ph)

215) 560-5554 (fax)

Updated January 12, 2015, Replacing June 11, 2014