COMAR 10.09.24.08
845
State of Maryland Medical Assistance Manual
Revised July 2012
purchased by or on behalf of the community spouse does not meet these requirements, it
is not penalized for these reasons. However, a penalty period may be imposed for other
reasons specified in this Section.
For annuities purchased before April 1, 2007, routine changes and automatic events that
do not require any action or decision after this Deficit Reduction Act section of the
Manual‘s effective date of April 1, 2007, are not considered transactions subject to
penalty (e.g., death or divorce of a remainder beneficiary). For example, if an annuity
purchased in 2005 specifies that distribution begins two years from the date of purchase,
and payouts begin as scheduled in 2007, this is not a transaction subject to penalty,
because no action was required to initiate the change after this Section‘s effective date.
Changes, which occur based on the annuity‘s terms enacted before this Section‘s
effective date, and which do not require another decision, election, or action to take
effect, are likewise not subject to a penalty. Also, changes that are beyond the owner‘s
control (e.g., change in law, the issuer‘s policies, or terms of the annuity based on factors
like the issuer‘s economic condition) are not considered transactions subject to penalty.
800.14 Trusts
A trust is a legal instrument, valid under state law, created other than by a will, by which
a grantor transfers property to one or more trustees who have the fiduciary responsibility
to hold, manage, and administer the trust‘s resources and income for the benefit of the
grantor or certain designated beneficiaries. Any arrangement in which a grantor transfers
property to a trustee or trustees with the intention that it be held, managed, or
administered by the trustee(s) for the benefit of the grantor or certain designated
individuals (beneficiaries), is a trust.
The term ―trust‖ includes any legal instrument, agreement or device that is similar to a
trust, in that it exhibits the general characteristics of a trust but which may not be called a
trust under State law. These include, but are not limited to, escrow accounts, investment
accounts, partnerships, pension funds and other similar entities managed by an individual
or entity with fiduciary obligation.
For purpose of this section, ―trusts‖ will not include trusts established through a will,
escrow accounts established as a mandatory condition for obtaining a mortgage on
excluded home property, escrow accounts established from security deposits required by
the Applicant, Recipient, or Spouse (A/R/S) landlord as a condition for leasing the home,
pension funds to which the A/R/S did not contribute as a mandatory condition of
employment, and pension funds to which the A/R/S did contribute as a mandatory
condition of employment, or pension funds to which the A/R/S contributed while still
employed. However, such funds will be counted as resources when they are available to
the A/R/S. An A/R/S will not be required to relinquish home property or the right to
occupy the home in order to make mortgage escrow accounts or security deposits or
similar funds available as resources.
(a) Who‟s who in Trusts?