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Creation of two self-funded irrevocable trusts

April 7, 2009

Appellant made two transfers of assets totaling $55,648 from her own assets. Each of the trusts directed monthly payments to be made on or behalf of appellant. Initially, DSS treated trusts as transfers of assets, with partial returns of the asset each month. Upon further review of the trusts, DSS determined that both trusts were available assets in each month of existence. DSS further categorized payments from trusts as income. Appellant characterized the trusts as annuities. Hearing officer upheld DSS determination that trust was an improper transfer and upheld penalty.

Fair Hearing Decision 4-7-09 (PDF)