US Code on Third-Party Trusts

Introduction to Trusts

General

A trust is a legal arrangement involving property and ownership interests. Property held in trust mayor may not be considered a resource for SSI purposes. The general rules concerning resources apply to evaluating the resource status of property held in trust.

Application of the Section

Generally, this section applies to trusts not subject to the statutory trust provisions in section 1613(e) of the Social Security Act, instructions for which are found in 81 01120.201 – 81 01120.204. Use the instructions in this section to evaluate the following types of trusts:

Trusts Established prior to 1/1/00 that Contain Assets of the Individual

Trusts established before 1/1/00 that contain assets of the individual, any of which were transferred before 1/1/00. If the trust was established prior to 1/1/00, but no assets of the individual were transferred to the trust prior to 1/1/00, see 81 01120.201.

Trusts that Contain Assets of Third Parties

• Trusts established before 1/1/00 that contain assets of third parties.
• Trusts established on or after 1/1/00 that contain only assets of third parties or the portion of a commingled trust attributable to assets of third parties. (Trusts established on or after 1/1/00 that contain assets of a Supplemental Security Income (SSI) claimant or recipient or the portion of a commingled trust attributable to assets of an SSI claimant or recipient must be evaluated under 81 01120.201 through 8101120.204.)

Other Trusts Not Subject to Section 1613(e) of the Social Security Act

Trusts established on or after 1/1/00 to which the instructions in 8101120.201-8101120.204 do not apply. (The instructions in those sections will refer you back to this section where applicable.)

Case Processing Alert

Trusts are often complex legal arrangements involving State law and legal principles that a claims representative (CR) may not be able to apply without legal counsel. Therefore, the following instructions may only be sufficient for you to recognize that an issue is present that should be referred to your regional office (RO) for possible referral to the Regional ChiefCounsel. When in doubt, discuss the issue with the RO staff. Many issues can be resolved by phone.