PM 07-02-15-b

Self-sufficiency Trusts

(FCRC) New textSend all trust agreements titled "Self-sufficiency Trust of Illinois" to HFS Long Term Care - Asset Discovery Investigation (LTC-ADI) for review.

(LTC-ADI) Notifies the FCRC whether or not the trust is exempt.

Community MANG, NH, SLF and DoA HCBS Waiver Cases

  1. New text(LTC-ADI) Complete HFS 3703 (Report of Irrevocable Trusts, Annuities, Promissory Notes or Interest in a Mortgage/Contract for Deed) for a person with an irrevocable trust containing provisions for the "payback" of medical assistance costs upon the person's death.
  2. New text(LTC-ADI) Send HFS 3703 to the HFS Bureau of Collections (BOC) Technical Recovery Section (TRS). The referral provides the BOC-TRS with the name of the person who has the trust, the date the trust was created, and the name and address of the trustee. Do not send a copy of the trust.
  3. New text(LTC-ADI) Enter Code 684 EIT in Item 80. Under the "Persons" column, enter the 4-digit date (mm/yy) of the referral to the BOC-TRS. Code 684 EIT may be changed, but not deleted.
  4. (CO) Notifies the BOC-TRS on the report entitled "Notice of Death - Client with an Exempt Irrevocable Trust", when a case with Code 684 EIT in Item 80 is canceled due to the person's death (TAR 00). The report includes the deceased person's name, RIN, and case number.
  5. (BOC) Initiates any recovery action of the trust proceeds.

"Pooled" Trusts

New textExample:  Mrs. C applies for her 67 year-old sister, Emma, who is a resident of Avis Nursing Home. Emma has a developmental disability. She received Social Security Disability before age 65 because she was determined to be disabled as defined by the Social Security Administration. Emma has a $50,000 special needs (pooled) trust that was established by her parents when she was 40 years old. The money that remains in the trust is exempt from consideration for eligibility. The month before application, Emma received an inheritance of $10,000 that was deposited in her trust. Even though Emma continues to have a disability according to SSA's definition, the deposit of $10,000 in the trust is treated as a transfer for less than fair market value (FMV) because it was made after Emma reached age 65. The $10,000 is considered an available resource. 

NOTE: An exception would apply if Emma was a ward of the county public guardian. In that circumstance, the deposit after age 65 would be considered a transfer for fair market value.