Long Term Care (LTC): Resource – Indian Trust Funds / IIM Accounts

317:35-5-41.9

317:35-5-42(b)

The following are not considered as resources:

Indian Payments or items purchased from Indian payments (including judgement funds or funds held in trusts) distributed by the Secretary of the Interior (BIA) or distributed by the tribe subject to approval by the Secretary of the Interior. Also, any interest or investments income accrued on such funds while held in trust or any purchases made with judgement funds, trust funds, interest, or investment income accrued on such funds. Any income from mineral leases, from tribal business investments, etc.

However, any interest or income derived from the principal or produced by purchases made with the funds after distribution is considered as any other income.

Funds and property held in Individual Indian Money (IIM) Accounts are treated as a converted resource and disregarded for purposes of eligibility. Disbursements of funds from IIM accounts are to be disregarded as a resource in the month in which the disbursement was made. However, any retained disbursed funds are counted as a resource for purposes of eligibility on the first of the month following the month of disbursement.

Example

Client receives a $1,500 disbursement from their IIM account on 02/07/2019. This is not considered as income or a resource in the month of February; however, any amount remaining from the disbursement on 03/01/2019 is a countable resource and must be applied to the $2,000 resource limit.

In addition, when determining eligibility for nursing facility care or one of the Home and Community Based waivers, if the client gives away any of the money that is disbursed from an IIM account, it is considered a transfer of assets and is subject to a penalty period.

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