WAG 07-02-15-b

The following trusts are exempt:

  • The principal and payments from a Self-Sufficiency Trust Fund established in accordance with 20 ILCS (Illinois Compiled Statutes) 1705/21.1, are exempt when determining eligibility for persons who are developmentally disabled or mentally ill.

To determine if a Self-Sufficiency Trust Fund is exempt, refer the trust to Revised textLong Term Care - Asset Discovery Investigation (LTC-ADI).

  • An irrevocable trust containing the resources of a person under age 65 who is disabled as determined by the Social Security Administration, or DHS's Client Assessment Unit (CAU) is exempt, if:
    • the trust is created on or after 08/11/93; and
    • the trust is created for the benefit of the person by a parent, grandparent, legal guardian or court; and
    • the trust contains language which states any amount remaining in the trust (up to the amount paid by Medicaid) will be paid to HFS when the person dies.

      If the trust contains proceeds from a personal injury award, any HFS or DHS charge must be satisfied first from the award before the trust is treated as an exempt resource.

      The trust remains exempt after the person reaches age 65. Treat any additions to the trust after the person reaches age 65 as a transfer for less than fair market value.

  • An irrevocable trust containing the resources of a person of any age who is disabled, as determined by the Social Security Administration or DHS's CAU, is exempt if the conditions listed below are met. New text This type of trust (known as a "pooled trust") remains exempt regardless of the age of the disabled person New textbut any additions to the trust after the person reaches age 65 are considered a transfer for less than fair market value unless the person is a ward of the county public guardian or the State guardian. The trust is exempt if:
    • the trust is created on or after 08/11/93; and
    • the trust is created and managed by a nonprofit organization; and
    • a separate account is maintained for each person, but for management purposes the trust pools funds; and
    • the account is set up for the benefit of the person by the person, a parent, grandparent, legal guardian or a court; and
    • the trust contains language which states any amount remaining in the trust (up to the amount paid by Medicaid) that is not retained by the trust for reasonable administrative costs related to resolving the affairs of the subaccount will be paid to HFS when the person dies.

      If the trust contains proceeds from a personal injury award, any HFS or DHS charge must be satisfied first from the award before the trust is treated as an exempt resource.