State Codes and Statutes

Statutes > Utah > Title-62a > Chapter-05 > 62a-5-110

62A-5-110. Discretionary trusts for persons with disabilities -- Impact on stateservices.
(1) For purposes of this section:
(a) "Discretionary trust for a person with disabilities" means a trust:
(i) that is established for the benefit of an individual who, at the time the trust is created,is under age 65 and has a disability as defined in 42 U.S.C. Sec. 1382c;
(ii) under which the trustee has discretionary power to determine distributions;
(iii) under which the beneficiary may not control or demand payments unless an abuse ofthe trustee's duties or discretion is shown;
(iv) that contains the assets of the beneficiary and is established for the benefit of thebeneficiary by a parent, grandparent, legal guardian, or court;
(v) that is irrevocable, except that the trust document may provide that the trust beterminated if the beneficiary no longer has a disability as defined in 42 U.S.C. Sec. 1382c;
(vi) that is invalid as to any portion funded by property that is or may be subject to a lienby the state; and
(vii) providing that, upon the death of the beneficiary, the state will receive all amountsremaining in the trust, up to an amount equal to the total medical assistance paid on behalf of thebeneficiary.
(b) "Medical assistance" means the same as that term is defined in Section 26-18-2.
(2) A state agency providing services or support to a person with disabilities may:
(a) waive application of Subsection (1)(a)(v) with respect to that individual if itdetermines that application of the criteria would place an undue hardship upon that individual;and
(b) define, by rule, what constitutes "undue hardship" for purposes of this section.
(3) A discretionary trust for a person with disabilities is not liable for reimbursement orpayment to the state or any state agency, for financial aid or services provided to that individualexcept:
(a) to the extent that the trust property has been distributed directly to or is otherwiseunder the control of the disabled beneficiary; or
(b) as provided in Subsection (1)(a)(vi).
(4) Property, goods, and services that are purchased or owned by a discretionary trust fora person with disabilities and that are used or consumed by a disabled beneficiary shall not beconsidered trust property that is distributed to or under the control of the beneficiary.
(5) The benefits that a person with disabilities is otherwise legally entitled to may not bereduced, impaired, or diminished in any way because of contribution to a discretionary trust forthat person.
(6) All state agencies shall disregard a discretionary trust for a person with disabilities, asdefined in Subsection (1), as a resource when determining eligibility for services or supportexcept as, and only to the extent that it is otherwise prohibited by federal law.
(7) This section applies to all discretionary trusts that meet the requirements contained inSubsection (1) created before, on, or after July 1, 1994.

Amended by Chapter 145, 1998 General Session