SR 05-06 Dated 04/04

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR releases clarifications on the treatment of homes placed into trusts established after 8/10/93 by individuals:

§   using their own or their spouse’s assets; and

§   applying for or receiving Home and Community-Based Care (HCBC) services or nursing facility care.

If the individual or the institutionalized individual’s spouse is a beneficiary to the trust, the home is a countable resource.

POLICY

A home is counted as a resource during the eligibility determination for nursing facility assistance or HCBC services when:

§   the individual or the institutionalized individual’s spouse has placed the home into a trust that was established after 8/10/93; and

§   the individual, or the institutionalized individual’s spouse, is a beneficiary to the trust.

NOTE: Institutionalized means applying for or receiving nursing facility assistance.

When a home has been placed into a trust as above, the home is counted as an asset:

§   regardless of whether the trust is revocable or irrevocable;

§   regardless of whether the home was otherwise excluded prior to its transfer to the trust; and

§   regardless of when the institutionalized individual, institutionalized individual’s spouse, or individual requesting or receiving HCBC services, placed the home into a trust. The home may have been placed into a trust many years before the individual requested nursing facility assistance or HCBC services, but if the trust was established after 8/10/93 the home is countable.

If the home is subsequently removed from the trust, the home is counted or excluded according to current real property resource policy in effect as of the date the home was removed from the trust.

NOTE: If the home is placed into a trust established after 8/10/93, including an irrevocable trust, and the individual, or the institutionalized individual’s spouse, is not a beneficiary of the trust, treat the home according to current policy, determining transfer of asset penalties as needed.

POLICY MANUAL REVISIONS

Revised Adult Assistance Manual Topics

PART 411   COMMON TYPES OF RESOURCES: REAL PROPERTY

PART 411   COMMON TYPES OF RESOURCES: TRUSTS USING THE ASSETS OF THE INDIVIDUAL OR SPOUSE

Revised Family Assistance Manual Topics

PART 409   COMMON TYPES OF RESOURCES: REAL PROPERTY

PART 409   COMMON TYPES OF RESOURCES: TRUSTS USING THE ASSETS OF THE INDIVIDUAL OR SPOUSE

IMPLEMENTATION

Policy released in this SR was applied to all new applicants of HCBC services or nursing facility care beginning April 1, 2004.

CLIENT NOTIFICATION

Beginning on April 1, 2004, clients applying for HCBC services or nursing facility care were notified of the policy released in this SR.

TRAINING

No special training is planned or needed.

DISPOSITION

This SR may be destroyed or deleted after its contents have been noted and the revised manual topics released by this SR have been posted to the On-Line Manuals.

DISTRIBUTION

This SR will be distributed according to the electronic distribution list for Division of Family Assistance policy releases. This SR, and revised On-Line Manuals, will be available for agency staff in the On-Line Manual Library, and for public access on the Internet at http://www.dhhs.nh.gov/DHHS/DFA/LIBRARY, effective January 30, 2006.

This SR, and printed pages with posting instructions, will be distributed under separate cover to all hard copy holders of Adult and Family Assistance Manuals.

DFA/JBV:s