Haw. Code R. § 17-1725.1-18 - Treatment of trusts established after August 10, 1993

(a) An individual shall be considered to have established a trust if assets of the individual form all or part of the corpus of the trust and if the trust was formed other than by a will by any of the following:

(1) The individual;

(2) The individual's spouse;

(3) A person, including a court or administrative body, with legal authority to act on behalf of the individual or the individual's spouse; or

(4) A person, including a court or administrative body, acting at the direction of the individual or the individual's spouse.

(b) If a trust contains assets of persons other than the individual, only the portion of the trust that contains the assets of the individual will be considered in this section.

(c) The treatment of trusts in this section will be made without regard to:

(1) The purpose for which the trust was established;

(2) Whether the trustees have or exercise any discretion under the trust;

(3) Any restrictions on when or whether distributions can be made from the trust; or

(4) Any restrictions on the use of distributions from the trust.

(d) In the case of a revocable trust the following shall apply:

(1) The corpus of the trust is considered an available asset;

(2) Payments from the trust to or for the benefit of the individual shall be considered income of the individual; and

(3) Any other payments from the trust shall be considered assets disposed and subject to the provisions of subchapter 7.

(e) In the case of irrevocable trusts the following apply:

(1) If payments could be made to or for the benefit of the individual, the portion of the corpus from which the payment could be made is considered an available asset;

(2) If payments could be made to or for the benefit of the individual, the income on the corpus from which the payment could be made is considered an available asset;

(3) The payments in paragraphs (1) and (2) from the corpus or from the income on the corpus is considered income to the individual; and

(4) The portion of the corpus from which no payments could be made to or on behalf of the individual is considered assets disposed and subject to the provisions of subchapter 7.

Notes

Haw. Code R. § 17-1725.1-18

[Eff 09/30/13] (Auth: HRS § 346-53; 20 C.F.R. §416.1201; 42 C.F.R. §431.10; 45 C.F.R. §233.20; 42 U.S.C. §1396 p) (Imp: HRS § 346-29; 20 C.F.R. §416.1201; 42 C.F.R. §431.10; 45 C.F.R. §233.20; 42 U.S.C. §1396 p)