Some trusts have provisions that limit trust benefits to the beneficiary or divert trust benefits to someone else if the beneficiary applies for or becomes eligible for public assistance. Such provisions in most trusts created in Minnesota on or after 7-1-92 are unenforceable. This includes trusts set up in a will with the client as beneficiary. The execution date of the 1st instrument with such a provision is the creation date. This is true even if the provision is later amended or the trust is not funded until later.

Supplemental needs trusts (SNTs) are exempt from the restriction above. See 0015.06.06.03 (Supplemental Needs Trust) for how to determine if a trust is a supplemental needs trust.

A trust might still be available even if a provision diverting trust benefits is valid. Apply the specific program provisions below to determine whether a trust is available.

When determining trust availability, ignore any provision making a trust unavailable for a beneficiary who applies for or gets public assistance if the trust (other than an SNT) was created in Minnesota on or after 7-1-92.


MFIP, DWP:
Clients with trust funds must try to gain access to them even if the trust appears to be legally unavailable. Clients must petition the trustee to distribute the funds in an amount equal to the needs (the cash portion of the grant) of the people covered by the trust, within 30 days of when you inform them. You must assist a client who needs help on the matter.

Deny or end assistance if the applicant or participant fails to pursue the petition. See 0012.12 (Applying for Other Benefits).

Do NOT require a client who had already petitioned the trustee as a condition of getting MFIP or AFDC (when AFDC existed) to re-petition.


WB:
No provisions.


SNAP:
No provisions.


MSA:
Consider trust funds available to a client if the client has the legal power to dissolve the trust and make personal use of the funds. This applies whether the client is the trustee or beneficiary.


GA:
Determine availability of trusts in the same manner as other assets. See 0015.06 (Availability of Assets).


GRH:
Follow MSA for aged, blind, or disabled clients. Follow GA for all other adults.