This includes trusts established before January 01, 2000, that contain assets of the individual, any of which were transferred before January 01, 2000.

If the trust was established prior to January 01, 2000, but no assets of the individual were transferred to the trust prior to January 01, 2000, see SI 01120.201.

This includes trusts that are:

• •

  established before January 01, 2000, that contain assets of third parties;

• •

  established on or after January 01, 2000, that contain only assets of third parties, or the portion of a commingled trust attributable to assets of third parties; and

• •

  Indian Gaming Regulatory Act (IGRA) trusts established by the Indian tribes that meet the criteria in SI 01120.195F.

Trusts established on or after January 01, 2000, to which the instructions in SI 01120.201 through SI 01120.204 do not apply. For example, section 1613(e) carves out certain exceptions, noting it does not apply to trusts described in section 1917(d)(4)(A) or (C), commonly referred to as special needs and pooled trusts, respectively. When it is determined that a special needs trust or a pooled trust exception is met, the trust must still be evaluated here under the rules of SI 01120.200.

A conservatorship account generally is established by a court and administered by a court-appointed conservator for the benefit of an individual. A conservatorship account differs from a trust in that the “beneficiary” of the conservatorship account retains legal ownership of all the account assets, although in some cases the assets may not be available for support and maintenance. For instructions pertaining to conservatorship accounts, see SI 01140.215.

Many nursing homes, institutions, and government social services agencies maintain so-called “patient trust accounts” for individuals to provide them with toiletries, candy, and sundries. Although titled as trust accounts, they are not. For example, the individual might legally own the money in the account, while a social services agency holds the money for the individual and disburses it as necessary for the individual’s benefit. For more information on transactions involving agents, see:

• •

  GN 00603.020 Collective Savings and Checking Accounts

• •

  SI 00810.120 Income Determinations Involving Agents

• •

  SI 01120.020 Transactions Involving Agents

An ABLE account is a type of tax-advantaged account that an eligible individual can use to save funds for their disability-related expenses. The eligible individual, who is also the designated beneficiary of the ABLE account, must be blind or disabled by a condition that began before the individual’s 26th birthday. A State (or a State agency or an instrumentality of a State) can establish an ABLE program. An eligible individual can open an ABLE account through the ABLE program in any State, if the State permits it. ABLE accounts are not trusts, and you should not evaluate them under trust instructions. For more information on ABLE accounts, see SI 01130.740.

One of the most common types of “in trust for” accounts is the representative payee account. A representative payee account is not a trust. However, its title may misleadingly suggest that the representative payee is the legal owner of the account principal. If a representative payee deposits current or conserved benefits in an account, the titling of the account should reflect the beneficiary's ownership interest in the account. For instructions pertaining to transactions or determinations involving agents, see SI 01120.020 and SI 00810.120. For instructions pertaining to the titling of accounts established by representative payees, see GN 00603.010.

A Totten trust is a revocable trust created by the depositing of money, usually in a savings account at a bank, in the depositor’s name as trustee for another. (It may have the phrase “in trust for” in the title.) The typical Totten trust is a kind of “pay on death” account. That is, the depositor names a beneficiary who inherits the funds in the account upon the depositor’s death.

Trust principal is a resource for SSI purposes if a trust beneficiary (applicant, recipient, or deemor) has legal authority to revoke or terminate the trust and then use the funds to meet their food or shelter needs. For the definitions of revoke and terminate, see SI 01120.200B.11. and SI 01120.200B.14. in this section. The trust principal is also a resource for SSI purposes if the trust beneficiary can direct the use of the trust principal for their support and maintenance under the terms of the trust.

Additionally, if the trust beneficiary can sell their right to receive payments from the trust, that right is a resource. For example, if the trust provides for payment of $100 per month to the trust beneficiary for spending money, and the trust does not have a valid spendthrift clause, then the trust beneficiary may be able to sell the right to future payments for a lump-sum settlement. The present value of the future payments counts as a resource. For more information on spendthrift clauses, see SI 01120.200B.13. in this section.

1. 1. 

   Grantor

   In some cases, the grantor has the authority to revoke a trust. Even if the grantor does not specifically retain the power to revoke a trust, a trust may be revocable in certain situations. For information on grantor trusts, see SI 01120.200B.4. and SI 01120.200D.3. in this section.

   Additionally, State law may contain presumptions as to the revocability of trusts. If the trust principal reverts to the grantor upon revocation and they can use it for support and maintenance, then the principal is a resource to the grantor.

2. 2. 

   Trust beneficiary

   A trust beneficiary generally does not have the power to terminate a trust. However, in some instances, the trust beneficiary may have the authority to terminate the trust and gain access to the trust assets or direct the use of the trust principal. Specific trust provisions may allow the trust beneficiary to act on their own or to order actions by the trustee. The trust beneficiary's ability to direct the use of the trust principal for support and maintenance, together with their equitable ownership in the trust principal, makes the trust principal a resource to the trust beneficiary.

   The trust beneficiary's right to mandatory periodic payments may be a resource equal to the present value of the anticipated payments, unless a valid spendthrift clause or other provision prohibits transfer or sale of the beneficiary’s interest in such anticipated payments. For more information on spendthrift clauses, see SI 01120.200B.13. in this section.

   NOTE: 

   While a trustee may have discretion to use the trust principal for the benefit of the trust beneficiary, the trustee is a third party and not an agent of the trust beneficiary. The actions of the trustee generally are not considered to be the actions of the trust beneficiary, unless the trust specifically states otherwise.

3. 3. 

   Trustee

   Occasionally, a trustee may have the legal authority to terminate a trust. However, the trust generally is not a resource to the trustee unless they become the owner of the trust principal upon termination. The trustee is a third party. Although the trustee has access to the trust principal for the benefit of the trust beneficiary, this does not mean that the trust principal is the trustee's resource. If the trustee has the legal authority to withdraw the trust principal and use it for their own support and maintenance, the amount of the trust principal that they can withdraw and use is the trustee's resource for SSI purposes.

   NOTE: 

   We are not responsible for developing or reporting claims or allegations of trustee misuse of trust funds. We will get involved only if the individual or entity allegedly misusing the funds is also the representative payee. For misuse of SSI funds, see GN 00604.001.

4. 4. 

   Totten trust

   The grantor of a Totten trust has the authority to revoke the financial account trust at any time. Therefore, the funds in the account are their resource.

Cash paid directly from the trust to the individual is unearned income. We treat disbursements from the trust to the trust beneficiary’s personal debit card the same as cash disbursements. We count the disbursement as unearned income for the month the disbursement is received or added to the debit card.

Disbursements from the trust to third parties that result in the trust beneficiary’s receiving non-cash items (other than food or shelter) are in-kind income if the items would not be partially or totally excluded non-liquid resources if retained into the month after the month of receipt. For example, if a trust buys a car for the trust beneficiary and the trust beneficiary's spouse already has an excluded car for SSI purposes, the disbursement to purchase the second car is income in the month of receipt since it would not be an excluded resource in the following month.

For receipt of certain noncash items, see SI 00815.550. For a list of resource exclusions, see SI 01110.210.

Food or shelter received by the trust beneficiary as a result of disbursements from the trust to a third party is income in the form of in-kind support and maintenance (ISM) and is valued under the presumed maximum value (PMV) rule. For instructions pertaining to the PMV rule, see SI 00835.300. For rules pertaining to a home, see SI 01120.200F in this section.

Generally, disbursements from the trust to a third party are not income to the trust beneficiary, unless otherwise stated in SI 01120.200E.1.a. and SI 01120.200E.1.b. in this section. Disbursements that do not count as income may include those made for educational expenses, therapy, transportation, professional fees, medical services not covered by Medicaid, phone bills, recreation, and entertainment. This list is illustrative and does not limit the types of distributions that a trust may permit. For bills paid by a third party, see SI 00815.400.

Disbursements made from the trust to a third party that result in the trust beneficiary’s receiving non-cash items (other than food or shelter) are not income if those items would become a totally or partially excluded non-liquid resource if retained into the month after the month of receipt. For example, if a trust purchases a computer for the trust beneficiary, the computer is not income, since we would exclude the computer from resources as a household good in the following month.

For resource treatment of household goods, personal effects, and other personal property, see SI 01130.430. For receipt of certain non-cash items, see SI 00815.550. For a list of resource exclusions, see SI 01110.210.

If a trust pays a credit card bill for the trust beneficiary, whether the individual receives income depends on the list of itemized charges on the bill. If the trust pays for food or shelter items on the bill, we will generally charge the individual with ISM for those items up to the PMV. If the bill includes non-food, non-shelter items, the individual does not receive income as a result of the payment, unless the items received would not be totally or partially excluded non-liquid resources the following month.

EXAMPLE: If the credit card bill includes restaurant charges, payment of those charges results in ISM. If the bill also includes the purchase of clothing, payment for the clothing is not income.

Administrator-managed prepaid cards, such as True Link cards, are a type of restricted debit card that can be customized to block the cardholder’s access to cash, specific merchants, or entire categories of spending. Typically, the trustee is the account owner and administrator, and the trust beneficiary is the cardholder. To evaluate the income and resource implications of trust disbursements to administrator-managed prepaid cards, we must determine who owns the prepaid card account.

If the trustee is the owner of the prepaid card account:

• •

  Whether the trust beneficiary receives income from trust disbursements depends on the type of purchase reflected in the card statement. Treat purchases in the following manner:

  • –

    If the administrator-managed prepaid card is used to obtain cash, such as at an ATM, the withdrawal counts as unearned income.

  • –

    If the administrator-managed prepaid card pays for food or shelter items, such as charges at a restaurant, the individual will generally be charged with ISM up to the PMV.

  • –

    If the administrator-managed prepaid card pays for non-food, non-shelter items, such as for clothing at a department store, the individual usually does not receive income unless the item received would not be a totally or partially excluded non-liquid resource the following month.

• •

  The administrator-managed prepaid card is not the trust beneficiary’s resource.

If the trust beneficiary is the owner of the prepaid card account:

• •

  Count all disbursements from the trust onto the card as unearned income; and

• •

  Count any unspent balance on the card as a resource as of the beginning of the month after funds are loaded onto the card.

Consider gift cards and gift certificates purchased by the trust for the individual’s use to be cash equivalents. If the individual can use a gift card or certificate to buy food or shelter (such as a restaurant, grocery store, or VISA gift card), it is unearned income in the month of receipt. Any unspent balance on the gift card or certificate is a resource beginning the month after the month of receipt. If the store does not sell food or shelter items (such as a flower shop or electronics store), but the card does not have a legally enforceable prohibition on the individual’s selling the card for cash, then it is still unearned income. For general policy on gift cards and gift certificates, see SI 00830.522.

Reimbursements made from the trust to a third party for funds expended on behalf of the trust beneficiary are not income.

Regular income and resource rules apply to items that a trust beneficiary receives from a third party. If a trust beneficiary receives a non-cash item (other than food or shelter), it is in-kind income if the item would not be a partially or totally excluded non-liquid resource if retained into the month after the month of receipt. If a trust beneficiary receives food or shelter, it is income in the form of ISM.

Funds transferred from the trust into an account established by the trust beneficiary under the Achieving a Better Life Experience (ABLE) Act are excluded from income to the trust beneficiary. For treatment of deposits into an ABLE account, see SI 01130.740.

If the trust principal is a resource to the individual, disbursements from the trust principal received by the individual or that result in receipt of something by the individual are not income but conversion of a resource. However, trust earnings may be income. For instructions pertaining to the conversion of resources from one form to another, see SI 01110.100. For treatment of income when the trust principal is a resource, see SI 01120.200G.2. in this section. For treatment of dividends and interest as income, see SI 00830.500.

If the trust is established with the assets of an individual or their spouse and the trust (or portion of the trust) is a resource to the individual:

• •

  any disbursement from the trust (or from the portion of the trust that is a resource) that is not made to, or for the benefit of, the individual is considered a transfer of resources as of the date of the payment and is not considered income to the individual (see SI 01150.110); and

• •

  any foreclosure of payment (an instance in which no disbursement can be made to the individual under any circumstances) is considered to be a transfer of resources as of the date of the foreclosure. Such foreclosure is not considered income to the individual.

If the trust, whose principal is not a resource, purchases the home outright and the trust beneficiary lives in the home in the month of purchase, the home is income in the form of ISM and reduces the trust beneficiary's payment no more than the PMV in the month of purchase only, regardless of the value of the home (see SI 01120.200E.1.b. in this section).

If the trust, whose principal is not a resource, purchases the home with a mortgage and the trust beneficiary lives in the home in the month of purchase, the home would be ISM in the month of purchase. Each of the subsequent monthly mortgage payments results in the receipt of income in the form of ISM to the trust beneficiary living in the house, each valued at no more than the PMV (see SI 01120.200E.1.b. in this section).

If the trust pays for other shelter or household operating expenses, these payments are income in the form of ISM in the month of the trust beneficiary’s use. For computations of ISM from outside the household, see SI 00835.350. For countable shelter expenses, see SI 00835.465D.

If the trust pays for repairs, maintenance, improvements, or renovations to the home, such as renovations to the bathroom to make it handicapped accessible, installation of a wheelchair ramp or assistive devices, or replacement of a roof, the trust beneficiary does not receive income. Disbursements from the trust for improvements increase the value of the resource and, unlike household operating expenses, do not provide ISM. For disbursements that are not income, see SI 01120.200E.1.c. in this section.

Trust earnings are not income to the trustee or grantor unless designated as belonging to the trustee or grantor under the terms of the trust; for example, as fees payable to the trustee or interest payable to the grantor.

Trust earnings are not income to the SSI applicant or recipient who is a trust beneficiary unless the trust directs, or the trustee makes, payments from the trust to the trust beneficiary.

Additions to trust principal made directly to the trust are not income to the grantor, trustee, or trust beneficiary. For exceptions to this rule, see SI 01120.200G.1.c. and SI 01120.200G.1.d. in this section. For clarification on the proper instructions to follow when additions are made by the individual or a third party, see SI 01120.200J. in this section.

Certain payments are non-assignable by law. Therefore, they are income to the individual entitled or eligible to receive the payments under regular SSI income rules, unless an exclusion applies (for example, SSI payments do not count as unearned income). Although a trust may be structured such that it appears that non-assignable payments are made directly into the trust, non-assignable payments may not be made directly into a trust, to avoid income counting or for any other reason.

Important examples of non-assignable payments include:

• •

  Temporary Assistance to Needy Families (TANF)/Aid to Families with Dependent Children (AFDC);

• •

  Railroad Retirement Board-administered pensions;

• •

  Veterans’ pensions and assistance;

• •

  Federal employee retirement payments (CSRS, FERS) administered by the Office of Personnel Management;

• •

  Social Security Title II and SSI payments; and

• •

  Private pensions under the Employee Retirement Income Security Act (ERISA) 29 U.S.C.A. § 1056(d)).

NOTE: Per GN 02402.060C, SSI and Title II payments generally may not be direct deposited into a trust. Since direct deposit into a trust transfers legal ownership and control of the funds to the trustee and not the Title II/SSI beneficiary/recipient, such an arrangement violates the assignment of benefits provision(s) of sections 207 and 1631(d)(1) of the Act.

A legally assignable payment that is assigned to a trust or trustee is income for SSI purposes, to the individual entitled or eligible to receive the payment, unless an SSI income exclusion applies or the assignment is irrevocable. We consider assignment of payment by court orders to be irrevocable. For example, child support or alimony payments paid directly to a trust or trustee because of a court order are considered irrevocably assigned and thus not income. Also, U.S. Military Survivor Benefit Plan (SBP) payments assigned to a special needs trust are not income because the assignment of an SPB annuity is irrevocable. For more information on SPB annuities, see SI 01120.201J.1.e.

For non-assignable payments, see SI 01120.200G.1.c. in this section.

Trust earnings are income to the individual for whom the trust principal is a resource, unless the terms of the trust make the earnings the property of another. For when to count income, see SI 00810.030.

Additions to principal may be income or conversion of a resource, depending on the source of the funds. If a third party deposits funds into the trust, the funds are income to the trust beneficiary. If the trust beneficiary transfers funds into the trust from an account that they own, the funds are not income but a converted resource.

Medicaid trusts are trusts that are established by an individual (by a means other than a will) on or after August 11, 1993, and that are made up, in whole or in part, of assets of that individual. We consider a trust as established by an individual if it was established by:

• •

  the individual;

• •

  the individual's spouse; or

• •

  a person (or a court or administrative body) with legal authority to act for the individual or spouse or who acts at the direction or request of the individual or spouse.

Medicaid trusts may contain terms such as “OBRA 1993 pay-back trust” or “trust established in accordance with 42 USC 1396” or may be mislabeled as an “MQT.” Medicaid trusts must be evaluated under SI 01120.201 to determine whether they are a resource for SSI purposes.

For additional information and procedures for coding and referring these trusts to the State Medicaid agencies, see SI 01730.048.

Medicaid trusts generally have a payback provision stating that, upon termination of the trust or the death of the beneficiary, the trust will reimburse the State Medicaid agency for medical assistance paid on behalf of the individual. According to the law in most States, the State is not the residual or contingent beneficiary but is a creditor, and we consider the reimbursement to be payment of a debt, unless the trust instrument reflects a clear intent that the State is a beneficiary rather than a creditor. This law may or may not apply in your State, so consult your regional instructions or regional office.

Obtain a copy of the trust document (the original trust document is not required) and any related documents and review the document(s) to determine whether the:

• •

  individual (applicant, recipient, or deemor) is the grantor, trustee, or trust beneficiary;

• •

  trust was established before, on, or after January 01, 2000;

• •

  trust was funded with assets of the individual or third parties or both;

• •

  trust is revocable or can be terminated and, if so, whether the individual has authority to revoke or terminate the trust and to use the principal for their own support and maintenance;

• •

  individual has access to the trust principal;

• •

  trust provides for or permits payments for the benefit of the individual, to the individual or on the individual’s behalf;

• •

  trust principal generates income (earnings) and, if so, whether the individual has the right to any of that income;

• •

  trust provides for mandatory periodic payments and, if so, whether the trust contains a spendthrift clause that is valid under State law and prohibits the voluntary and involuntary alienation of any interest of the trust beneficiary in the trust payments; and

• •

  trust is receiving payments from another source.

Depending on the trust’s date of establishment and whose funds the trust principal contains, follow these instructions to determine the resource status and income treatment of the trust:

*If the SSI recipient is the beneficiary of an unfunded third-party trust (e.g., the trust will be funded upon the death of a parent), it is not necessary to review and submit the unfunded trust to SSITMS for SSI eligibility purposes until it is funded.

Consult any regional instructions that pertain to trusts to see if there are State or Tribal laws to consider on such issues as revocability or irrevocability and grantor trusts. You may also consult the Title XVI Regional Chief Counsel (RCC) Precedents. For RCC precedents on trusts, see PS 01825.000.

If there are any unresolved issues requiring clarification that prevent you from determining the resource status of a trust, or there are issues for which you believe you need a legal opinion, follow your regional instructions or consult with your regional office (RO) program staff via vHelp. The RO staff can resolve many issues via vHelp. Once the specific question or issue submitted via vHelp is resolved, submit the case in SSITMS with the appropriate notes documenting the situation and resolution for the reviewer's reference for the resource determination. If necessary, the RO staff will seek guidance from the central office (CO) or OPLaw. Do not contact or refer materials to OPLaw directly.

If the State in question recognizes oral trusts as binding (see regional instructions):

• •

  record all relevant information;

• •

  obtain from all parties signed statements describing the arrangement; and

• •

  unless regional instructions specify otherwise, refer the case to your RO staff. The RO will refer the case, through the Assistant Regional Commissioner, Management and Operations Support (ARC, MOS), to OPLaw.

NOTE: The special needs trust and pooled trust exceptions do not apply in the case of an oral trust since these exceptions require written evidence as part of the trust document. For more information on the special needs trust and pooled trust exceptions, see SI 01120.203.

If the State does not recognize oral trusts as binding (see regional instructions), determine whether an agency relationship (a person acting as an agent of the individual) exists and develop under regular resource-counting rules or transfer of resources rules, as applicable. For transactions involving agents, see SI 01120.020.

Record all information used in determining whether the trust is a resource or generates income on the Trust page in the Supplemental Security Income Claims System (SSI Claims System). For more information on what trust information to record, see MS 08113.005. Record your rationales, summary of supporting documentation, and conclusions on the Report of Contact page (and subsequently lock it). When a certified electronic folder (EF) exists, upload the following into Section D (Non-Disability Development) of the Electronic Disability Collect System (EDCS):

• •

  a copy of the trust document (original not required), along with trust attachments, amendments (if any), joinder agreement (for pooled trusts), and exhibits;

• •

  copies of any signed agreements between organizations making payments to the individual and the individual legally entitled to such payments, if the payments have been assigned to the trust or trustee;

• •

  records of payments or disbursements from the trust, as necessary; and

• •

  any other pertinent documents, such as court orders, and the Form SSA-5002 (Report of Contact) that indicates the trust resource determination.

In the case of a paper folder, upload these materials into the Evidence Portal.

For more information on trust documentation and development, see the trust review process in SI 01120.200L in this section.

When listing the value of a trust with liquid assets, the field office (FO) technician may follow a high/low documentation option if the exact value is not material to the trust resource determination or claimant's eligibility. This means, if a trust has more than one liquid asset, you may use the highest verified value for any or all of them if doing so permits eligibility for all months in the period of review; or the lowest verified value for any or all of them if doing so results in ineligibility for all months in the period of review. If there is only one liquid asset, you may use the high/low option for any month within the period of review. Any high or low value used must be verified, and documentation must show that it applies throughout the period for which it is used. In addition, any non-liquid assets in the trust would be added to the selected liquid asset value when recording each monthly total value for the trust. Finally, for the first and final months of the review period, the verified values for all assets must be provided as the total value of the trust. FO technicians must still develop for distributions and additions, as discussed in SI 01120.200E to SI 01120.200G or SI 01120.201I to SI 01120.201J, in all months during the period of review. The high/low development policy does not change this requirement.

For documentation, the FO technician should:

1. 1. 

   Note if the high/low development policy was used and, if so, state the specific liquid asset with the high or low value selected for it on the Report of Contact;

2. 2. 

   Provide the total value of the trust as the selected liquid asset plus any nonliquid assets for the encompassed months of review on the Trust page; and

3. 3. 

   Provide the verified balance for all assets in the first and final months of the review period to reflect the total value of the assets in the trust on the Trust page.

Effective 04/27/18: If, due to a change in policy, a policy clarification, or reopening of a prior erroneous determination, a trust that was previously determined not to be a resource under SI 01120.200 is now determined to be a resource, offer a 90-day amendment period as described in this section and document verbal notifications in the claim file.

Tickle the case for follow-up in 90 days. If a trust was not previously counted as a resource, do not count the trust as a resource and do not impose an overpayment pending possible amendment within the 90-day period.

We permit each trust that was not previously determined to be a resource only one 90-day amendment period. However, you may grant a request for an extension to the 90-day amendment period for good cause, if the individual requests it and provides evidence that the disqualifying issue cannot be resolved within the 90-day period (for example, if a court must amend the trust and there is a wait to get on the court docket). Document on the Report of Contact page the decision to grant the extension, the time allowed, and the reason. Tickle the case for follow-up. Field office staff have discretion to allow a reasonable time period for a good cause extension depending on the situation.

If the trust is amended to be policy-compliant within the 90-day period (plus any extension), the trust continues not to be a resource for SSI purposes.

If the trust still fails to meet the policy requirements after expiration of the 90-day amendment period (plus any extension), count the trust as a resource beginning with the later of (1) the date when the policy change or clarification first applies to the trust or (2) the earliest date as of which the prior determination or decision is reopened and revised.

For all IC and PE cases where an applicant, recipient, or deemor alleges an interest in a trust that needs a resource determination, determine whether the trust is a countable resource. To make the trust resource determination, follow trust policy in SI 01120.200D in this section.

After making a trust resource determination:

1. 1. 

   Document the determination along with any references and rationale used in the decision-making process:

   • •

     For SSI Claims System cases, use the Report of Contact page; and

   • •

     For non-SSI Claims System cases, use a Form SSA-5002 (Report of Contact) and store it in the Evidence Portal.

2. 2. 

   Upload the initial trust resource determination, trust document(s), and any pertinent information into the Evidence Portal.

Then follow these trust review process steps:

Follow these procedures:

• •

  Access the SSITMS website and select the “Add New” tab. Add the applicant’s or recipient’s name, representative payee’s name (if any), social security number, and all other relevant trust information;

• •

  Select the appropriate type of trust in SSITMS (third-party trust, special needs trust, etc.);

• •

  Add remarks describing your determination and rationale; and

• •

  Submit the trust resource determination for RTRT review.

SSITMS sends an email notification after the trust reviewer (TR) or regional trust lead (RTL) reviews the trust resource determination and makes a decision. To view the RTRT’s response:

• •

  Access SSITMS and select the case from the Summary page listing or use the link in the email to access the case, and

• •

  Click on the “Details/Update” tab.

The Results field will show that the RTRT member either agreed or disagreed with the trust resource determination. When the Claims Specialist is ready to process the case, change the trust status to “FO Effectuated” using the Edit function.

To request a reevaluation of a trust resource determination that the FO disagrees with (after a decision has been made by the RTRT), access SSITMS and:

• •

  change the Trust Status to “Referred to RTL” using the Edit function; and

• •

  provide the rationale, a summary of supporting documentation, and appropriate references in SSITMS Remarks and select “Submit.”

The RTL will select the case for review and determine if the central office (CO) or the Office of Program Law (OPLaw) needs to review the case. The RTL will respond to the request via the SSITMS website, and SSITMS will send an email notification when the RTL completes the reevaluation process.

When the applicant or recipient appeals the trust resource determination, a Claims Specialist makes a proposed reconsideration determination, which the RTL must then review. To request a review of the proposed trust reconsideration determination, access SSITMS and:

• •

  select “Recon Pending” from the Recon Trust Status dropdown using the Edit function for that case; and

• •

  provide pertinent information about the reason for the appeal in Claims Specialist remarks and select “Submit.”

When the RTRT requires additional information from the FO, it will return the case for further development. SSITMS will send to the FO mailbox an email notification about the further development requested. To view the RTRT’s request, access SSITMS and:

• •

  select the case from the Summary page listings or use the link in the email to access the case; and

• •

  click on the “Details/Update” tab.

View the request for additional information in the Remarks field. After completing the development requested, update the Trust Status to “FO Development Completed” using the Edit button and submit.

Select the case from the SSITMS Summary listing page or by using the link in the email notification, and:

• •

  update the Trust Status field to "Review Initiated";

• •

  click the “Details/Update” tab;

• •

  review information provided by the Claims Specialist technician in the SSI Claims System and eView by using the Evidence Portal;

• •

  determine if consultation with CO or OPLaw is necessary;

• •

  provide the review results in the Remarks field;

• •

  update Trust Status to “Completed by RTL”; and

• •

  indicate “agree” or “disagree” with the Claims Specialist’s determination in Results and click “Submit.”

RTLs will receive an email notification whenever a trust resource determination needs reevaluation. To view the reevaluation request, access the case from the SSITMS Summary page listing.

To reevaluate the trust resource determination, follow steps listed in SI 01120.200L.3.a. in this section. The Claims Specialist who submitted the case and the Claims Specialist’s FO mailbox will receive an automated email notification when the RTL makes a decision. The subject line will show “Response to Trust for Reevaluation.”

SSITMS sends the RTL an email notification when they need to review an FO determination on a trust reconsideration. To view appeal requests, access the case from the SSITMS Summary page listing or from the link in the email notification. To review the reconsideration determination or address the appeal request, follow the steps listed in SI 01120.200L.3.a. in this section.

The Claims Specialist who submitted the case and the Claims Specialist’s FO mailbox will receive an automated email notification when the RTL makes a decision. The subject line will show “Response to SSI Trust Recon for Review.”

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  Situation

The claimant is a child and the beneficiary of a trust established on their behalf by their parent, who is their legal guardian. The money used to establish the trust was inherited by the claimant directly from their grandparent, making the beneficiary the grantor. The parent is also the trustee. The trust document indicates that the trust may be revoked at any time by the grantor.

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  Analysis

Since the grantor may revoke the trust at any time, the trust is a resource to the grantor. In this situation, the child is the grantor and the trust is their resource. This is the case because the actions of the parent, as legal guardian, are taken as an agent for the child. Be aware of situations in which the same person may serve multiple functions (such as parent, guardian, and trustee), and distinguish which specific function the person is performing in order to determine whether the person is acting as an agent for the claimant. Note that it is allowable for the same person to perform multiple functions independently of each other without acting as an agent of the claimant. For the definition of a grantor, see SI 01120.200B.3. in this section.

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  Situation

On April 21, 1998, the trust beneficiary, a 17-year-old SSI recipient, received a $125,000 judgment as the result of a car accident that left them disabled. Their parent, as their legal guardian, placed the money in an irrevocable trust for the sole benefit of the recipient with their sister as trustee. The trustee has absolute discretion as to how the trust funds are to be spent, and the trust has a prohibition against the trustee’s spending funds in a way or amount that would make the recipient ineligible for Federal or State assistance payments. There is no named residual beneficiary. Under the State law, if an individual is both the grantor of a trust and the sole beneficiary, the trust is revocable, regardless of language in the trust to the contrary.

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  Analysis

Since the recipient's parent, as their legal guardian, established the trust with funds that belonged to the recipient, we treat the recipient as having established the trust themselves. Therefore, they are the grantor of the trust. Since they are also the sole beneficiary of the trust, the trust is revocable under the State law and is the recipient's resource, regardless of the language in the trust document. The recipient is ineligible due to excess resources.

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  Situation

The SSI recipient is the beneficiary of an irrevocable trust created and funded by their deceased parents. Their sibling is the trustee. The terms of the trust give the sibling full discretionary power to withdraw funds for the recipient's educational expenses. The trustee uses these funds to pay the recipient's tuition and room and board at a boarding school. The trust pays $25 of monthly interest income into a separate account that designates the recipient as owner. They have the right to use these funds in any way they wish. The trust also contains a spendthrift clause that prohibits the trust beneficiary from transferring their interest in the trust payments prior to receipt; the spendthrift clause is valid under the State law.

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  Analysis

Since the recipient, as trust beneficiary, has no authority to terminate the trust established with their parents’ assets or to access the principal directly, the trust principal is not their resource. While trust disbursements for the beneficiary’s benefit may be income to them, the disbursements for tuition are not income since they do not provide food or shelter in any form. However, the trust disbursements for room and board are in-kind support and maintenance valued under the PMV rule. The $25 monthly deposits of trust earnings are income when deposited into the recipient's personal account and are resources to the extent retained into the following month. The trust beneficiary's right to the stream of $25 monthly payments is not a resource because they cannot sell or assign it prior to receiving the payments due to the valid spendthrift clause under the State law. For a definition of spendthrift clauses, see SI 01120.200B.13. in this section.

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  Situation

The claimant is a minor and the beneficiary of an irrevocable trust established in 1997 with the child's annuity payment by their parent, who is their representative payee. The parent is also the trustee. The claimant's siblings will become the trust beneficiaries in the event of the claimant's death. In the State where the claimant lives, the grantor can revoke the trust if they are also the sole beneficiary. The siblings are “residual beneficiaries” who become the beneficiaries upon the prior beneficiary's death.

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  Analysis

The trust principal is not a resource to the claimant. The trust document provides that the trust is irrevocable under the general rule in SI 01120.200D.2. in this section. Although the claimant is the grantor of the trust (because the actions of the parent as payee are as an agent of the claimant), the trust is not revocable under the rule for grantor trusts because the claimant is not the sole beneficiary, see SI 01120.200D.3. in this section.

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  Situation

The SSI claimant is the beneficiary of a revocable trust established with their parent’s assets for their future care. Their parent is their legal guardian. The claimant, as trust beneficiary, has no authority to terminate the trust. The claims specialist reviews the trust document to see if the claimant, through their legal guardian, have unrestricted access to the trust principal, whether the trust provides for payments on their behalf, and whether the trust principal generates income.

The trust document is very complex, and the fact that the claimant's parent is grantor, trustee, and their legal guardian further complicates the situation. The claims specialist cannot determine whether the trust principal is available to the trust beneficiary through the grantor or trustee.

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  Analysis

Because it is not clear from the trust document whether the parent, as legal guardian, “stands in the claimant's shoes” and controls the trust, the claims specialist consults with the RO staff for possible referral through the ARC, MOS, to OPLaw for an opinion.

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  Situation

The recipient is the beneficiary of an irrevocable trust. The trust document indicates that the recipient is the sole named beneficiary and also the grantor of the trust. The document also indicates that there are unnamed residual beneficiaries, the recipient's “heirs.”

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  Analysis

The adjudicator consults regional instructions on State law pertaining to grantor trusts. According to those instructions, a grantor trust may be a resource to the recipient, but the State law is unclear about the effect of the unnamed residual beneficiaries. The adjudicator consults with the RO staff for possible referral through the ARC, MOS, to OPLaw.