Section 50489 - Trusts -General(a) Property and income held in trust for the benefit of an individual or individual's spouse shall be treated in accordance with Sections 50489 through Section 50489.9. These sections shall supersede any other section(s) of this article.(b) For purposes of sections 50489 through 50489.9, the following definitions apply:(1) "Annuitant" means a person who has the right to receive payments from an annuity. The annuity shall be annuitized based upon the life expectancy of the annuitant.(2) "Annuitized" means that an annuity is paying a fixed, equal amount to the annuitant on a periodic basis. Payments shall be no less frequent than monthly over a number of years equal to or less than the annuitant's life expectancy as indicated in life expectancy tables provided by the Secretary for the Department of Health and Human Services, contained in Section 3258.9 (Revision 64), Part 3 of the Health Care Financing Administration's State Medicaid Manual and titled "Life Expectancy Table--Males and Life Expectancy Table--Females". The final annuity payment may be for an amount less than the previously fixed annuity payments in order to fully exhaust benefits under the annuity. An annuity shall be considered annuitized even though it may provide an annual cost of living adjustment equal to or less than 5%.(3) "Annuity" means a contract to make periodic payments of a fixed or variable sum paid to an annuitant which are payable unconditionally. Annuity payments may continue for a fixed period of time or for as long as an annuitant lives. An annuitant purchases an annuity with his or her property or property rights. Annuities shall be established to provide the annuitant with payments representing principal and interest which are more than the fair market value of the property used to purchase the annuity. Annuities purchased prior to August 11, 1993, other periodic payment plans, or annuities that are purchased with property rights belonging to someone other than the Medi-Cal applicant/beneficiary or spouse shall continue to be treated in accordance with Title 22, Section 50402 and Article 10 of this chapter.(4) "Assets" shall mean all income and property of the individual or the individual's spouse, including income or property which the individual or spouse is entitled to, but does not receive because of circumstances brought about by: (A) the individual or the individual's spouse, or(B) any other individual or entity, including a court or administrative body, with legal authority to act in place of, or on behalf of, the individual or the individual's spouse, or(C) any other individual or entity, including any court or administrative body, acting at the direction or upon the request of the individual or the individual's spouse.(5) "Beneficiary" means any individual or individuals designated in the trust instrument as benefiting in some way from the trust.(6) "Date of establishment" means the date the trust document (in the case of a trust), annuity purchase agreement (in the case of an annuity), or other creating document (in the case of a similar legal device) is signed and dated. A trust is not considered to be established on the date it has been amended.(7) "Irrevocable trust" means a trust which cannot be revoked by its own terms or a trust deemed to be irrevocable under State law.(8) "Revocable trust" means a trust which can be revoked by its own terms or a trust deemed to be revocable under State law.(9) "Similar legal device" (SLD) means any legal instrument, device or arrangement that involves the transfer of assets from an individual or entity (transferor) to another individual or entity (transferee) with the intent that the assets be held, managed, or administered by an individual or entity for the benefit of the transferor or certain other individuals. SLDs also include annuities purchased on or after August 11, 1993.(10) "Trust" means any arrangement in which an individual or entity (trustor) transfers assets to a trustee with the intent that the assets be held, managed, or administered by the trustee(s) for the benefit of the trustor or certain designated individuals (beneficiaries). The trust must be valid under State law. The term "trust" also includes any legal instrument or device similar to a trust as described in subsection (b)(9) of this section.(11) "Trustee" means any individual(s), entity, trust advisory committee, or individual(s) with power of appointment, who manages, holds, or administers a trust for the trust beneficiary or beneficiaries.(12) "Trustor" means an individual who creates a trust. A trustor is also known as the "settlor" or "grantor".(c) For purposes of this article, trusts shall be classified in three ways: (1) Medicaid Qualifying Trusts (MQT): A trust established prior to August 11, 1993, as described in Section 50489.1.(2) OBRA 93 Trusts: A trust established on or after August 11, 1993 as described in Section 50489.5.(3) Other Trusts: A trust other than those described in subsections (c)(1) or (c)(2) of this section.(d) Placement of assets in, or distributions from, a trust other than a burial trust which is exempt pursuant to Section 50479 shall be considered a transfer of assets.(e) Verification of trusts shall be performed by the county in accordance with subsections (e)(1) and (e)(2) of this section. (1) A written trust shall be verified by examining the trust documents and any other related documents.(2) An oral trust shall be verified by written affidavit and by any other related documents. Affidavits shall be dated and signed under penalty of perjury, and shall specify the terms of the oral agreement. Real property cannot be held in an oral trust. Oral trusts which are held in financial institutions are subject to Section 50402.Cal. Code Regs. Tit. 22, § 50489
1. Repealer and new section filed 4-6-94; operative 5-6-94 (Register 94, No. 14). For prior history, see Register 87, No. 30.
2. Repealer and new section filed 1-28-98; operative 1-28-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 5). Note: Authority cited: Sections 10725 and 14124.5, Welfare and Institutions Code. Reference: Sections 14005.7, 14006 and 14015(a), Welfare and Institutions Code; and Sections 1396 a(r)(2)(A) and 1396p(c), (d) and (e), Title 42, United States Code.
1. Repealer and new section filed 4-6-94; operative 5-6-94 (Register 94, No. 14). For prior history, see Register 87, No. 30.
2. Repealer and new section filed 1-28-98; operative 1-28-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 5).