2006 Minnesota Statutes

501B.895 PUBLIC HEALTH CARE PROGRAMS AND CERTAIN TRUSTS.
(a) It is the public policy of this state that individuals use all available resources to pay for
the cost of long-term care services, as defined in section 256B.0595, before turning to Minnesota
health care program funds, and that trust instruments should not be permitted to shield available
resources of an individual or an individual's spouse from such use.
(b) When a state or local agency makes a determination on an application by the individual
or the individual's spouse for payment of long-term care services through a Minnesota public
health care program pursuant to chapter 256B, any irrevocable inter-vivos trust or any legal
instrument, device, or arrangement similar to an irrevocable inter-vivos trust created on or after
July 1, 2005, containing assets or income of an individual or an individual's spouse, including
those created by a person, court, or administrative body with legal authority to act in place of, at
the direction of, upon the request of, or on behalf of the individual or individual's spouse, becomes
revocable for the sole purpose of that determination. For purposes of this section, any inter-vivos
trust and any legal instrument, device, or arrangement similar to an inter-vivos trust:
(1) shall be deemed to be located in and subject to the laws of this state; and
(2) is created as of the date it is fully executed by or on behalf of all of the settlors or others.
(c) For purposes of this section, a legal instrument, device, or arrangement similar to
an irrevocable inter-vivos trust means any instrument, device, or arrangement which involves
a grantor who transfers or whose property is transferred by another including, but not limited
to, any court, administrative body, or anyone else with authority to act on their behalf or at
their direction, to an individual or entity with fiduciary, contractual, or legal obligations to the
grantor or others to be held, managed, or administered by the individual or entity for the benefit
of the grantor or others. These legal instruments, devices, or other arrangements are irrevocable
inter-vivos trusts for purposes of this section.
(d) In the event of a conflict between this section and the provisions of an irrevocable trust
created on or after July 1, 2005, this section shall control.
(e) This section does not apply to trusts that qualify as supplemental needs trusts under
section 501B.89 or to trusts meeting the criteria of United States Code, title 42, section 1396p
(d)(4)(a) and (c) for purposes of eligibility for medical assistance.
(f) This section applies to all trusts first created on or after July 1, 2005, as permitted under
United States Code, title 42, section 1396p, and to all interests in real or personal property
regardless of the date on which the interest was created, reserved, or acquired.
History: 2005 c 155 art 3 s 7; 1Sp2005 c 3 art 11 s 6; 1Sp2005 c 4 art 5 s 19