Grantor The grantor is also the sole beneficiary. Trustee is required to pay trust earnings from the principal to the beneficiary or for his use. Trustee has no discretion. Mandatory Trust Example: Specific dollar amounts are to be paid out at the beneficiary’s 25th, 30th, and 35th birthdays. Not a current beneficiary but will receive benefits under specific circumstances. Residual Beneficiary Example: Children of the grantor receive the residual benefits of the trust at his spouse’s death or remarriage. Property interest property is held by a trustee with the duty to Trust use the property for another’s benefit Person for benefit the trust exists. Does not hold legal title Trust Beneficiary but has equitable ownership. Examples: interest, dividends, royalties, rents. Unearned income Trust Earnings (Income) if able to use these trust earnings for support Holds legal title to property for another person’s use or benefit. Trustee Generally, may not revoke the trust or use it for personal gaint. Property placed in the trust plus any earnings paid in and left to Trust Principal accumulate This is a tentative trust. The grantor makes himself/herself the Totten Trust trustee of his own funds for the benefit of someone else. If he dies, ownership passes to the beneficiary. 302.30.02 Instruments Similar to Trusts (Eff. 09/01/16) The following accounts and instruments are similar to trusts and may be titled as trusts but may or may not be considered a resource. Instrument Definition Difference from a Trust Established by a Beneficiary is the owner Conservator Court appointed conservator uses the even when the assets are Account account for the individual. not available. Procedure Verification: Copy of court order appointing conservator Copy of bank statements for the conservator account Generally, counted as a resource. (Refer to MPPM .) Treatment: Instrument Definition Difference from a Trust Held and maintained by institution Patient Trust Used for things such as toiletries, Patient is the owner. Account cigarettes, candy. Procedure:
Grantor The grantor is also the sole beneficiary. Mandatory Trust Trustee is required to pay trust earnings from the principal to the beneficiary or for his use. Trustee has no discretion. Example: Specific dollar amounts are to be paid out at the beneficiary’s 25th, 30th, and 35th birthdays. Residual Beneficiary Not a current beneficiary but will receive benefits under specific circumstances. Example: Children of the grantor receive the residual benefits of the trust at his spouse’s death or remarriage. Trust Property interest property is held by a trustee with the duty to use the property for another’s benefit Trust Beneficiary Person for benefit the trust exists. Does not hold legal title but has equitable ownership. Trust Earnings (Income) Examples: interest, dividends, royalties, rents. Unearned income if able to use these trust earnings for support Trustee Holds legal title to property for another person’s use or benefit. Generally, may not revoke the trust or use it for personal gaint. Trust Principal Property placed in the trust plus any earnings paid in and left to accumulate Totten Trust This is a tentative trust. The grantor makes himself/herself the trustee of his own funds for the benefit of someone else. If he dies, ownership passes to the beneficiary. 302.30.02 Instruments Similar to Trusts (Eff. 09/01/16) The following accounts and instruments are similar to trusts and may be titled as trusts but may or may not be considered a resource. Instrument Definition Difference from a Trust Conservator Account Established by a Court appointed conservator uses the account for the individual. Beneficiary is the owner even when the assets are not available. Procedure Verification: Copy of court order appointing conservator Copy of bank statements for the conservator account Treatment: Generally, counted as a resource. (Refer to MPPM .) Instrument Definition Difference from a Trust Patient Trust Account Held and maintained by institution Used for things such as toiletries, cigarettes, candy. Patient is the owner. Procedure:
Chapter_302.docx