Trust Fund and Per Capita Distribution
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This section includes information about income received as trust fund and per capita distribution payments.
Policy
A trust is any arrangement where money or property is entrusted to one or more persons with the intent that it is administered for the benefit of one or more persons.
Trust funds are legal instruments that establish account funds held for a beneficiary. Trust funds can be established by a court order, guardian, legal representative, or a nonparticipant. When the trust is from Indian Gaming, the payments are considered tribal per capital payments.
Per Capita payments are a distribution of property or money to a person on a per person basis. Per capita payments from the following funds are not countable, up to a maximum of $2,000 per payment per participant: (Public Law 98‑64)
●Funds held in trust by the Secretary of Interior for an Indian tribe
●Funds awarded by the Indian Claims Commission of the U.S. Court of Federal Claims
The income that exceeds $2,000 per payment per participant is countable.
Trust fund accounts held in trust or by a conservator and that can only be accessed by a court order are referred to as irrevocable trust funds. All of the following are considered for irrevocable trust funds:
●Availability and countable value of the trust fund is considered from the terms written in the trust agreement discretionary clause, or court records. The maximum distributable amount that can be paid from the interest or principal of the trust in a budget month is the countable resource.
●For CA, allow the participant or the parent 20 calendar days to petition the trustee or the court to make funds available when the trust fund is in the name of a trustee and is not accessible.
The participant has to petition the court for the funds when any of the following applies:
The trust fund permits the distribution of monies to the participant in accordance with a court order.
The trust fund permits the participant to petition the court for the fund, and the trustee refuses.
●The available amount is countable when the participant fails to provide verification that the petition has been filed by the end of the 20 calendar days.
For NA, the trust fund is not countable when any of the following applies:
●The trust arrangement is not going to stop during the approval period
●A participant or nonparticipant who has the power to revoke the trust or change the beneficiary name does not live in the residence
●A court, institution, corporation, bank or organization not under direction or ownership of anyone living in the residence is appointed or employed as trustee of the funds
●A nonparticipant who has limitations placed on use of the funds is appointed by the court as trustee of the funds
●Trust investments made on behalf of the trust do not directly involve or assist any business or corporation under the control, direction or influence of someone in the budgetary unit. The funds held in irrevocable trust also have been established from any of the following:
Established from the budgetary unit's own funds. The trustee has to use the funds solely to make investments on behalf of the trust, or to pay the educational or medical expenses of anyone named by the budgetary unit that created the trust.
Established from funds that are outside of the budgetary unit residence by a nonparticipant outside of the residence.
When a participant cannot legally control the use of the trust fund for his or her own food, clothing or shelter expenses, it is not countable.
Countable income is used to determine an income budget. (See Income Budgeting to see how FAA determines the income budget.) FAA needs to know about income that is both countable and not countable to determine whether a budgetary unit’s expenses are exceeding their income. (See Income Eligibility for more information about how FAA uses countable and not countable income.)
Procedures
When the participant is present, have them sign the Authority to Release (FAA‑1765A) form to contact any companies or businesses involved. The FAA-1765A can be faxed or emailed to the participant's employer when it is not possible to use the Application for Benefits (FAA-0001A) or the HEAplus Authority to Release signed statement.
Count the available amount when the trust fund is accessible to the participant. Count funds that are available for meeting daily basic needs (such as food, clothing or shelter). The available amount is found in the agreement as part of the discretionary clause.
Consider all payments to the participant from the trust fund as unearned income. Consider the trust fund as a lump sum when the full amount of the fund is paid to the participant. Do not count payments as income and resources in the same month. For more information on Indian Gaming Industry Per Capita, see Example 1.
Verification
System interface and the case file(g) must be reviewed before verification is requested. No additional verification is needed when AZTECS interface or HEAplus hubs have verified the information.
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy.)
For NA, all of the following income is required to be verified before eligibility is determined:
●Reported on a new application, during the interview of a new application, or changes reported before the eligibility determination of a new application.
●Changes after an eligibility determination of a new application (e.g., a renewal application, mid approval contact, etc.) and any of the following apply:
The source of the income has changed.
The income is questionable(g) or unclear(g).
The reported income amount has changed by $51 or more.
The previous verification in the case file is more than 59 calendar days old.
For CA, all income is required to be verified before determining eligibility.
Examples of verification that can be used for Trust Fund Distribution Payments include, and are not limited to, any of the following:
●Assistance payments records
●Benefit award letters from SSA, Statement of Earnings VA, and other agencies
●Bank records
●Current check reflecting gross income
●Federal or state tax forms
●Insurance policies
●Signed statement from the agency or payer providing the income
●Participant Statement verification when one of the following occur:
Obtaining documented or collateral contact verification may cause harm or undue hardship(g) for the participant.
When all of the following occur:
●Other attempts to obtain the verification have failed. This includes documented and collateral contact verification.
●The participant has requested assistance from FAA.
●The worker has evaluated the request for assistance and cannot obtain the verification from another acceptable source.
●The participant statement is not questionable(g).
AZTECS Keying Procedures
For Trust Fund Distribution payments, key the ID Unearned Income Code in the INC TYPE field on UNIC.
For trust fund accounts, key trust funds on FIAC using the TF Financial Account Code.
When the trust funds are available, they are countable and keyed according to financial account type as all of the following:
●For funds in a personal checking account at a bank, see Checking Accounts.
●For funds in a savings account at a bank, see Savings Accounts.
●For funds in a credit union account, see Credit Union Accounts.
Per capita income that exceeds $2,000 per payment per participant is countable. Key the OT Unearned Income Code in the INC TYPE field on UNIC.
Document the case file(g) thoroughly to support keyed codes, amounts, and frequencies. See the AZTECS Data Entry Guide for instructions on keying the AZTECS income screens.
NOTE Documentation must support determinations of eligibility and benefit level. Document in sufficient detail to ensure that any reviewer can assess whether the determination is reasonable and accurate. Include specific information regarding the reason the income is determined to be normal. (See Budgeting Income Documentation Requirements for additional information.)
Examples
1) Joe submits an new application on 08/01. On his application, he reports receiving quarterly per capita gaming income from the Gila River tribe. He was interviewed on 08/02 and indicated that he receives Indian Gaming per capita income. Joe reported receiving $800 on 07/01 and provided hard copy verification.
The Indian Gaming per capita income is reasonably expected to be received quarterly. The income is budgeted with the IG OT Unearned Income Code in the INC TYPE field on UNIN. Use the QR Frequency Code in the FREQ field on UNIC. AZTECS divides Joe’s income by three to determine the monthly amount.
Legal Authorities
AAC R6-12-403
7 CFR 273.9(c)(10)(iv)
Pub. L. 94–114, section 6
Public Law 98‑64
Public Law 92-203, Section 21(a)
last revised 10/02/2023