C.R.S. Section 25.5-6-102
Court-approved trusts

  • transfer of property for persons seeking medical assistance for nursing home care
  • undue hardship
  • legislative declaration

(1)

The general assembly hereby finds, determines, and declares that:

(a)

The state makes significant expenditures for nursing home care under the “Colorado Medical Assistance Act”;

(b)

A large number of persons do not have enough income to afford nursing home care, but have too much income to qualify for state medical assistance, a situation popularly referred to as the “Utah gap”;

(c)

Some persons in the Utah gap, through innovative court-approved trust arrangements, have become qualified for state medical assistance, thereby increasing state medical assistance expenditures;

(d)

It is therefore appropriate to enact state laws which limit such court-approved trusts in a manner that is consistent with Title XIX of the federal “Social Security Act”, 42 U.S.C. sec. 1396 et seq., as amended, and which provide that persons who qualify for assistance as a result of the creation of such trusts shall be treated the same as any other recipient of medical assistance for nursing home care;

(e)

In enacting this section, the general assembly intends only to limit certain court-approved trusts and court-approved transfers of property. It is not the general assembly’s intent to approve or disapprove of privately created trusts or private transfers of property made under the same or similar circumstances.

(2)

The county department shall verify that an applicant for medical assistance for nursing home care, pursuant to the provisions of this title, meets applicable eligibility criteria for assistance other than those set forth in subsection (3) of this section. Upon verification, for eligibility purposes and in accordance with subsection (3) of this section, the county department shall make a determination of the status of any court-approved trust established for or court-approved transfer of property made by or for the applicant.

(3)

Intentionally left blank —Ed.

(a)

If a person who applies for medical assistance for nursing home care would be deemed ineligible for assistance as a result of deeming a court-approved trust established for the applicant as a medicaid qualifying trust or as a result of deeming property in the court-approved trust as an improper transfer of assets, the person’s application shall, nonetheless, be treated as a case of undue hardship and the person shall be eligible for medical assistance for said care if the establishment of the court-approved trust meets the following criteria:

(I)

The applicant’s monthly gross income from all sources, without reference to the court-approved trust, exceeds the income eligibility standard for medical assistance then in effect but is less than the average private pay rate for nursing home care for the geographic region in which the applicant lives;

(II)

The property used to fund the trust shall be limited to monthly unearned income owned by the applicant, including any pension payment;

(III)

The applicant and the state medical assistance program shall be the sole beneficiaries of the trust. The entire corpus of the trust, or as much of the corpus as may be distributed each month without violating federal requirements for federal financial participation, shall be distributed each month for expenses related to the beneficiary’s nursing home care that are approved under the medical assistance program; except that an amount reasonably necessary to maintain the existence of the trust and to comply with federal requirements may be retained in the trust. Deductions may be distributed from the trust to the same extent deductions from the income of a nursing home resident who is not a trust beneficiary are allowed under the medical assistance program, which shall include the following:

(A)

A monthly personal needs allowance;

(B)

Payments to the beneficiary’s community spouse or dependent family members as provided and in accordance with Title XIX of the federal “Social Security Act”, 42 U.S.C. sec. 1396r-5, as amended, and section 25.5-6-101;

(C)

Specified health insurance costs and special medical services provided under Title XIX of the federal “Social Security Act”, 42 U.S.C. sec. 1396a(r), as amended; and

(D)

Any other deduction provided in the rules of the state department.

(IV)

Upon the death of the beneficiary, a remainder interest in the corpus of the trust shall pass to the state agency responsible for administering the state medical assistance program;

(V)

The trust shall not be subject to modification by the beneficiary or the trustee unless otherwise provided by this section or section 15-14-412.5, C.R.S.

(b)

For the purposes of this subsection (3), “medicaid qualifying trust” shall have the same meaning as set forth in Title XIX of the federal “Social Security Act”, 42 U.S.C. sec. 1396a(k).

(4)

The state board shall adopt rules as are necessary for the implementation of this section and as are necessary to comply with federal law. In addition, the state department shall amend the state medical assistance plan in a manner that is consistent with the provisions of this section.

(5)

This section shall take effect January 1, 1992, and shall apply to any court-approved trust established for or court-approved transfer of property made by or for a protected person applying for or receiving medical assistance for nursing home care pursuant to the provisions of this title, on or after said date; except that a court-approved trust created before said date that does not comply with this section shall be modified to comply with this section no later than July 1, 1992, before which time the court-approved trust or court-approved transfer of property to a trust shall not render the protected person ineligible for medical assistance.

(6)

The provisions of this section shall not apply if federal funds are not available for persons who would qualify for medical assistance as a result of a court-approved trust that meets the criteria set forth in this section.

(7)

This section shall apply to trusts established or transfers of property made prior to July 1, 1994. The provisions set forth in sections 15-14-412.6 to 15-14-412.9, C.R.S., and any rules adopted by the state board pursuant to section 25.5-6-103 shall apply to trusts established or property transferred on or after that date.

Source: Section 25.5-6-102 — Court-approved trusts - transfer of property for persons seeking medical assistance for nursing home care - undue hardship - legislative declaration, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-25.­5.­pdf (accessed Oct. 20, 2023).

25.5‑6‑101
Spousal protection - protection of income and resources for community spouse - definitions - amounts retained - responsibility of state department - right to appeal
25.5‑6‑102
Court-approved trusts - transfer of property for persons seeking medical assistance for nursing home care - undue hardship - legislative declaration
25.5‑6‑103
Court-approved trusts - transfer of property for persons seeking medical assistance - rule-making authority for trusts created on or after July 1, 1994 - undue hardship
25.5‑6‑104
Long-term care placements - comprehensive and uniform client assessment instrument - report - legislative declaration - definitions - repeal
25.5‑6‑105
Legislative declaration relating to implementation of single entry point system - repeal
25.5‑6‑106
Single entry point system - authorization - phases for implementation - services provided - repeal
25.5‑6‑107
Financing of single entry point system - repeal
25.5‑6‑108.5
Community long-term care studies - authority to implement - alternative care facility report
25.5‑6‑110
Private-public partnership education and information program concerning long-term care insurance authorized
25.5‑6‑113
Health home - integrated services - legislative declaration - contracting - definitions
25.5‑6‑115
Notification of federal immigration consequences
25.5‑6‑116
Community placement transformation - creation - report - repeal
25.5‑6‑201
Special definitions relating to nursing facility reimbursement
25.5‑6‑202
Providers - nursing facility provider reimbursement - exemption - rules - repeal
25.5‑6‑203
Nursing facilities - provider fees - federal waiver - fund created - rules - repeal
25.5‑6‑204
Providers - reimbursement - intermediate care facility for individuals with intellectual disabilities - reimbursement - maximum allowable
25.5‑6‑205
Collection of penalties assessed against nursing facilities - creation of cash fund
25.5‑6‑206
Personal needs benefits - amount - patient personal needs trust fund required - funeral and final disposition expenses - penalty for illegal retention and use
25.5‑6‑208
Nursing facility provider reimbursement - rules - definition - repeal
25.5‑6‑209
Establishment of nursing facility provider demonstration of need - criteria - rules
25.5‑6‑210
Additional supplemental payments - nursing facilities - funding methodology - reporting requirement - rules - repeal
25.5‑6‑301
Short title
25.5‑6‑302
Legislative declaration
25.5‑6‑303
Definitions - repeal
25.5‑6‑304
Administration
25.5‑6‑305
Provision of services for elderly and blind individuals and individuals with disabilities
25.5‑6‑306
Eligible groups
25.5‑6‑307
Services for the elderly, blind, and disabled
25.5‑6‑308
Cost of services
25.5‑6‑309
Special provisions - post-eligibility treatment of income
25.5‑6‑310
Special provisions - personal care services provided by a family - repeal
25.5‑6‑311
Duties of state department
25.5‑6‑312
Gifts - grants
25.5‑6‑313
Rules - federal authorization
25.5‑6‑314
Training for staff providing direct-care services to clients with dementia - rules - definitions
25.5‑6‑401
Short title
25.5‑6‑402
Legislative declaration - Prader-Willi syndrome
25.5‑6‑403
Definitions
25.5‑6‑404
Duties of the department of health care policy and financing and the department of human services
25.5‑6‑405
Relationship to other programs
25.5‑6‑406
Appropriations - reimbursement for services - direct support professionals - legislative declaration - definitions - repeal
25.5‑6‑407
Gifts - grants
25.5‑6‑408
Eligibility - fees
25.5‑6‑409
Services for persons with intellectual and developmental disabilities
25.5‑6‑409.3
Consolidated waiver - intellectual and developmental disabilities - conflict-free case management - legislative declaration - repeal
25.5‑6‑409.5
Transition plan for youth with intellectual and developmental disabilities to adult services - legislative declaration - report - rules - cash fund
25.5‑6‑410
Qualification for federal funding
25.5‑6‑411
Personal needs trust fund required
25.5‑6‑413
Elimination of subminimum wage - transition plan for individuals with disabilities - waiver - legislative declaration - definition
25.5‑6‑601
Short title
25.5‑6‑602
Legislative declaration - no entitlement created
25.5‑6‑603
Definitions
25.5‑6‑604
Cost of services
25.5‑6‑605
Relationship to single entry point for long-term care - repeal
25.5‑6‑606
Implementation of program for persons with mental health disorders authorized - federal waiver - duties of the department of health care policy and financing and the department of human services - rules
25.5‑6‑607
Implementation of part contingent upon receipt of federal waiver - repeal of part
25.5‑6‑701
Short title
25.5‑6‑702
Legislative declaration - no entitlement created
25.5‑6‑703
Definitions - repeal
25.5‑6‑704
Implementation of home- and community-based services program for persons with brain injury authorized - federal waiver - duties of the department - rules - repeal
25.5‑6‑705
Implementation of part contingent upon receipt of federal waiver - repeal of part
25.5‑6‑706
Rate structure - rules - quality assurance
25.5‑6‑901
Disabled children care program - eligibility criteria - documentation requirements - report to the general assembly
25.5‑6‑902
Children’s personal assistance services and family support program - repeal
25.5‑6‑903
Residential child health-care program - waiver - home- and community-based services - rules
25.5‑6‑1101
Definitions
25.5‑6‑1102
Service model - consumer-directed care - repeal
25.5‑6‑1103
Reporting
25.5‑6‑1201
Legislative declaration - repeal
25.5‑6‑1202
Definitions
25.5‑6‑1203
In-home support services - eligibility - licensure exclusion - in-home support service agency responsibilities - rules - repeal
25.5‑6‑1204
Provision of services - duties of state department - gifts - grants
25.5‑6‑1205
Accountability - rate structure - rules
25.5‑6‑1206
Report - repeal
25.5‑6‑1207
Repeal of part
25.5‑6‑1301
Legislative declaration
25.5‑6‑1302
Definitions
25.5‑6‑1303
Pilot program - complementary or alternative medicine - rules
25.5‑6‑1304
Repeal of part
25.5‑6‑1401
Legislative declaration
25.5‑6‑1402
Definitions
25.5‑6‑1403
Waivers and amendments
25.5‑6‑1404
Medicaid buy-in program - eligibility - premiums - medicaid buy-in fund - report - rules - repeal
25.5‑6‑1405
Rule-making authority
25.5‑6‑1406
Availability of federal financial assistance under medical assistance
25.5‑6‑1501
Community transition services and supports - legislative declaration - rules
25.5‑6‑1601
Definitions
25.5‑6‑1602
State department to request increase in reimbursement rate for certain services
25.5‑6‑1603
Minimum wage - wage pass-through requirement for certain home care agencies - applicability - reports - recovery
25.5‑6‑1604
Training for home care agency employees - process for reviewing and enforcing training requirements
25.5‑6‑1605
Exemptions
25.5‑6‑1701
Legislative declaration
25.5‑6‑1702
Definitions
25.5‑6‑1703
Case management system - defined service areas - case management services - only willing and qualified provider exemption - rules
25.5‑6‑1704
Intellectual and developmental disability determination - functional eligibility determination - rules
25.5‑6‑1705
Person-centered support plan
25.5‑6‑1706
Termination of long-term services and supports for member receiving services
25.5‑6‑1707
Records and confidentiality of information
25.5‑6‑1708
Performance audits - Colorado local government audit law - public disclosure of board administration and operations
25.5‑6‑1709
Community-centered board designation - rules
25.5‑6‑1801
Legislative declaration
25.5‑6‑1802
Definitions
25.5‑6‑1803
Development of spending plan
25.5‑6‑1804
Spending plan - approval by joint budget committee - reporting
25.5‑6‑1805
Home- and community-based services improvement fund - creation - transfer - expenditures
25.5‑6‑1806
Repeal of part
25.5‑6‑1901
Definitions
25.5‑6‑1902
Community first choice option - covered services - state plan amendment
25.5‑6‑1903
Permissible services and supports
25.5‑6‑1904
Maintenance of effort
25.5‑6‑1905
Eligibility
Green check means up to date. Up to date

Current through Fall 2024

§ 25.5-6-102’s source at colorado​.gov