By Thomas D. Begley, Jr., CELA<\/p>\n
A sole benefit of trust is a creature of\u00a0HCFA Transmittal 64.’ These trusts\u00a0have traditionally been used in crisis\u00a0planning. They can be established for\u00a0the benefit of disabled persons\u2014a Disability Annuity Trust\u00a0(“DAT”).2 The idea is that assets would be transferred to\u00a0an irrevocable trust for the sole benefit of the disabled\u00a0individual. The assets in the trust were then paid out\u00a0to the beneficiary on an actuarially sound basis using\u00a0the actuarial tables contained in HCFA Transmittal 64.;i\u00a0However, some states, including New Jersey, maintain\u00a0that despite the clear language in HCFA Transmittal 64,\u00a0the language in the statute “sole benefit of” means that a\u00a0Medicaid payback provision is required. Because the assets\u00a0were transferred to an irrevocable trust “for the sole benefit\u00a0of” a disabled individual, the transfer is not subject to the\u00a0Medicaid transfer penalty rules.<\/p>\n
This is a particularly useful device where (1) there are\u00a0highly appreciated assets and utilization of the trust makes\u00a0it possible for a (more…)<\/span><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" By Thomas D. Begley, Jr., CELA The Concept A sole benefit of trust is a creature of\u00a0HCFA Transmittal 64.’ These trusts\u00a0have traditionally been used in crisis\u00a0planning. They can be established for\u00a0the benefit of disabled persons\u2014a Disability Annuity Trust\u00a0(“DAT”).2 The idea…<\/span><\/p>\n