The trusts in this section may or may not be counted as resources in determining an individual’s eligibility for MA.
A third party (such as an individual’s parents, relatives, or friends) may establish a trust for the benefit of the individual. The trust may be established by the third party’s will or by a lifetime transfer from the third party. These trusts are funded exclusively by a third party. The terms of the trust may permit the individual to receive payments from the income and principal of the trust. Pennsylvania Courts have determined that the terms of the trust and specific circumstances of the establishment of the trust govern whether the trust can be considered available to the individual:
Trusts that permit payments to an individual for the individual’s comfort, health, education, maintenance, and support are generally counted as a resource. Such trusts are commonly known as support trusts.
Trusts that provide that payments may supplement but not supplant public assistance benefits that the individual may receive are generally not counted as a resource. Such trusts are commonly known as supplemental trusts.
The determination whether a third party trust is available to the individual depends on the facts of each case.
If the CAO is not able to determine whether the trust should be counted, the CAO should follow the procedures in Section 441.31 - Review of Trusts by the Office of General Counsel.
Updated July 11, 2014