Colorado § 15-14-412.8 Disability trusts - limitations

Colorado Statutes

§ 15-14-412.8 — Disability trusts - limitations

Colorado § 15-14-412.8

Title 15Probate,

Art.Persons Under Disability - Protection

This text of Colorado § 15-14-412.8 (Disability trusts - limitations) is published on Counsel Stack Legal Research, covering Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Colo. Rev. Stat. § 15-14-412.8 (2026).

Text

(1)A disability trust within the meaning of this section is a trust that is established for an individual under sixty-five years of age who is disabled, as such term is defined in Title XIX of the federal Social Security Act, 42 U.S.C. sec. 1382c (a)(3), as amended, consists of assets of the individual, and is established for the purpose or with the effect of establishing or maintaining the individual's resource eligibility for medical assistance.

(2)A disability trust is not valid for the purpose of establishing or maintaining a person's resource eligibility for medical assistance unless the trust meets all of the following criteria:

(a)The trust is funded by assets of an individual under age sixty-five who is disabled as defined in 42 U.S.C. sec. 1382c (a)(3), as amended, and

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(1) A disability trust within the
meaning of this section is a trust that is established for an individual under sixty-five years of age who is disabled, as such term is defined in Title XIX of the federal
Social Security Act, 42 U.S.C. sec. 1382c (a)(3), as amended, consists of assets of
the individual, and is established for the purpose or with the effect of establishing
or maintaining the individual's resource eligibility for medical assistance.

(2) A disability trust is not valid for the purpose of establishing or
maintaining a person's resource eligibility for medical assistance unless the trust
meets all of the following criteria:

(a) The trust is funded by assets of an individual under age sixty-five who is
disabled as defined in 42 U.S.C. sec. 1382c (a)(3), as amended, and which is
established for the benefit of such individual by the individual, the individual's
parent, the individual's grandparent, the individual's guardian, or by the court.

(b) The trust provides that, upon the death of the beneficiary or termination
of the trust during the beneficiary's lifetime, whichever occurs sooner, the
department of health care policy and financing receives any amount remaining in
the trust up to the total medical assistance paid on behalf of the individual.

(c) The sole lifetime beneficiaries of the trust are the individual for whom the
trust is established and the state medical assistance program. After the death of
the person for whom the trust is created or after the trust is terminated during the
beneficiary's lifetime, whichever occurs sooner, no person is entitled to payment
from the remainder of the trust until the state medical assistance agency has been
fully reimbursed for the assistance rendered to the person for whom the trust was
created.

(3) A disability trust is not valid for the purpose of establishing or
maintaining eligibility for any category of public assistance other than medical
assistance.

(4) No disability trust shall be valid unless the department of health care
policy and financing, or its designee, has reviewed the trust and determined that
the trust conforms to the requirements of this section and any rules adopted by the
medical services board pursuant to section 25.5-6-103, C.R.S.

Legislative History

Source: L. 2000: Entire part R&RE, p. 1813, � 1, effective January 1, 2001 (see � 15-17-103). L. 2006: (4) amended, p. 2003, � 53, effective July 1. L. 2017: (2)(a) amended, (HB 17-1280), ch. 230, p. 894, � 1, effective May 23.