Instruments Similar to Trusts

402.31.03 Use of Trust Funds

If an individual (claimant, beneficiary or deemor) has legal authority to revoke the trust and then use the funds to meet his/her food, clothing or shelter needs, or if the individual can direct the use of the trust principal for his/her support and maintenance under the terms of the trust, the trust principal is a resource for SSI purposes.

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  Grantor
  
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    Sometimes, the grantor has the authority to revoke a trust.
    
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    Even if the power to revoke is not specifically retained, the trust may be revocable in certain situations.
    
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    State law may contain presumptions as to revocability of trusts.
    
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    If the principal reverts to the grantor at revocation and can be used for support and maintenance, the principal is a resource.
    

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  Beneficiary
  
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    Generally, does not have the power to revoke a trust.
    
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    Trust may be a resource if he/she has the authority to direct the use of the principal:
    
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      Under specific trust provisions
      
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      By order of the trustee
      
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    The trustee should not be considered an agent of the beneficiary unless the trust specifically states this. The opposite is true in the case of a Power of Attorney who acts as an agent.
    

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  Trustee
  
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    Trustees occasionally have the right to revoke a trust.
    
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    Trust is not a resource to the trustee on these occasions unless the trustee:
    
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      Becomes the owner at revocation.
      
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      Can withdraw and use the principal for his/her own support.
      
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    The trustee is considered a third party.
    

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  Totten Trust