Chapter 3 Using Trusts for Persons Who Are Elderly or Have a Disability

Index

Section 3.1 Introduction
Section 3.2 How Trusts Impact MO HealthNet Eligibility
Section 3.3 Types of Trusts
Section 3.4 Special Needs Trust
Section 3.5 Purely Discretionary Trust
Section 3.6 Support Trust
Section 3.7 Discretionary Support Trust
Section 3.8 Who Established the Trust
Section 3.9 Third Party-Settled Trust
Section 3.10 Self-Settled Trust
Section 3.11 Intent of the Settlor
Section 3.12 Discourage Distributions for Food and Shelter
Section 3.13 Spendthrift Provision
Section 3.14 Trustee Discretion
Section 3.15 Unique Trustee Powers
Section 3.16 Coordinating With Benefits the Beneficiary Is Receiving
Section 3.17 Social Security
Section 3.18 Medicare
Section 3.19 Veterans’ Benefits
Section 3.20 Supplemental Security Income
Section 3.21 MO HealthNet
Section 3.22 Assisted Housing
Section 3.23 Summary
Section 3.24 Trustee Should Be Independent
Section 3.25 Consider Using Co-Trustees
Section 3.26 Oversight of Trustee—Trust Protectors
Section 3.27 Settlor Should Normally Not Be Trustee
Section 3.28 Beneficiary Should Not Be Trustee
Section 3.29 Removal and Appointment of Trustees
Section 3.30 Beneficiary Should Not Have This Power
Section 3.31 Alternative Choices
Section 3.32 Generally
Section 3.33 Limited Power of Trustee to Amend (Suggested Language)
Section 3.34 Beneficiary’s Needs
Section 3.35 Ongoing Guidance to the Trustee
Section 3.36 Definition
Section 3.37 Dilemma of a Third Party
Section 3.38 Choices to Establish the Trust
Section 3.39 Testamentary Trust
Section 3.40 Living Trust
Section 3.41 Separate Living Trust
Section 3.42 Revocable Living Supplemental Benefit Trust
Section 3.43 Irrevocable Living Supplemental Benefit Trust
Section 3.44 Drafting Principles
Section 3.45 Missouri Cases
Section 3.46 Missouri Public Policy Favors Third Party-Settled Supplemental Benefit Trusts
Section 3.47 Definition
Section 3.48 Missouri Public Policy Accepts Self-Settled Supplemental Benefit Trusts
Section 3.49 When to Use a Self-Settled Trust
Section 3.50 Personal Injury Award
Section 3.51 Inheritance and Gifts
Section 3.52 Accumulated Assets
Section 3.53 Minor Persons Who Have a Disability
Section 3.54 Adults Who Are Recently Disabled
Section 3.55 Date of the Trust Is Important
Section 3.56 Overview
Section 3.57 MO HealthNet Rules Relating to Self-Settled Trusts
Section 3.58 Only Applies to MO HealthNet Not Supplemental Security Income
Section 3.59 Current Definition of Trust
Section 3.60 Rules for Establishing a Trust
Section 3.61 Revocable Trust
Section 3.62 Irrevocable Trust
Section 3.63 Trust Assets Available to the Settlor
Section 3.64 Trust Assets Not Available to the Settlor
Section 3.65 Exceptions
Section 3.66 d4A Trust (a/k/a Medicaid Payback Trust)
Section 3.67 When to Use a d4A Trust
Section 3.68 Rules for d4A Trusts
Section 3.69 Unique Missouri Legislation Affecting d4A Trusts
Section 3.70 Qualified Income Trust (Miller Trust)
Section 3.71 Pooled Trust
Section 3.72 Who Should Establish the Trust
Section 3.73 Grandparent or Parent
Section 3.74 Legal Guardian
Section 3.75 Court
Section 3.76 Introduction
Section 3.77 Transfer Penalties
Section 3.78 Is the Trust Revocable?
Section 3.79 Who Established the Trust?
Section 3.80 Early Termination Clauses
Section 3.81 Tax Issues—Design and Drafting Suggestions
Section 3.82 General Rules
Section 3.83 Assignment to a Trust
Section 3.84 Court Approval
Section 3.85 Taxation of Trust Income
Section 3.86 Generally
Section 3.87 Who Is the Grantor?
Section 3.88 Methods of Making the d4A Trust a “Grantor Trust”
Section 3.89 Generally
Section 3.90 What Is a Completed Gift?
Section 3.91 Arguments Against a Gift
Section 3.92 Drafting Suggestion—Testamentary Power of Appointment
Section 3.93 Estate Taxes