367.937 Permissibility of irrevocable trust provision -- Effect on determining

358 words·~2 min read·/ky/367-937

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

eligibility for entitlement programs -- Required form for application.

(1)Notwithstanding the provisions of KRS 367.936 to the contrary, an agreement,

contract, or plan may provide that the trust shall be irrevocable during the lifetime

of the beneficiary or grantor, if at the time of the signing of an agreement, contract,

or plan or at any time thereafter, the beneficiary or grantor of the trust is, becomes,

applies, or intends to apply to be an aged, blind, or disabled recipient of benefits

pursuant to the federal Supplemental Security Income program under Title XVI of

the Social Security Act or any other federal or state entitlement program. Funds

irrevocably set aside for burial reserves, burial spaces, or other funds for funeral and

burial expenses, including interest thereon shall be excluded as a financial resource

in determining the beneficiary's or grantor's eligibility under any federal or state

entitlement program as long as exclusion is not prohibited by any federal law or

regulation governing the entitlement program.

(2)An application for an irrevocable trust shall be on a form developed by the Attorney

General, which shall require proof that the beneficiary or grantor has received,

applied for, or intends to apply for entitlement benefits within thirty

(30)days of the

signing of the agreement, contract, or plan. The form showing proof shall thereafter

be maintained in the files of the agent.

(3)If, for any reason, a beneficiary or grantor of the trust fails to apply for entitlement

benefits within thirty

(30)days of his written intention to do so, fails to receive, or

otherwise becomes ineligible for entitlement benefits, then the trust shall be a

revocable trust.

(4)An irrevocable trust established pursuant to this section shall not affect the selection

of funeral goods or services or the selection of the funeral home. At any time the

beneficiary or grantor of the trust may, by written request to the agent and trustee,

change the agent, trustee, or both.

(5)All agreements, contracts, or plans entered into prior to the enactment of this statute

may be made irrevocable pursuant to the provisions of this section upon written

application to the agent.