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Library: Policy

OKDHS:10-1-7. Trust accounts

Issued 4-1-98

     Monies held in trust for an individual applying for or receiving AFDC must have the availability of the funds determined. Funds held in trust are considered available both when actually available and when the applicant or recipient has a legal interest in a liquidated sum and has the legal ability to make such sum available for support and maintenance. In this circumstance, a decision regarding availability should be made by the social worker. Funds may also be held in trust and under the control of someone other than the AFDC parent or caretaker relative, such as the courts, agencies, other individuals, etc., or the Bureau of Indian Affairs (BIA). The availability of these funds is determined by using the procedures described in (1) and (2) of this Section.

  • (1) Funds held in trust by courts, agencies, other individuals, etc. Certain information must be obtained at the time of application or at the time it is learned a trust is in existence. This information must include a copy of the trust instrument; when applicable, a copy of all relevant court documents including Journal Entry, Order, Settlement Agreement, etc, and documentation reflecting any prior disbursements (date, amount, purpose, etc.).
    • (A) Release of trust by written petition or written request. The availability of the trust can only be determined after a written petition to the court for the release of the total funds has been made or a written request is made to the trustee if the trust is not a court supervised account. The individual is instructed in writing to petition the court in writing or submit a written request to the trustee for release of the total amount of the funds in the trust account.
      • (i) The written notice to the AFDC parent or caretaker relative informs the client the petition or request must be filed with the court or submitted to the trustee within 30 days from the date of the notice, and that failure to do so will result in case denial or closure due to the county not being able to determine eligibility. A copy of the petition or request should be submitted by the client to the social worker. Upon receipt of a copy of the petition or request, the trust account at issue will be considered unavailable. The client is instructed to provide the social worker with a copy of the court or trustee's response.
      • (ii) When the AFDC parent or caretaker relative complies timely with the petition or request but cannot get a response from the court or trustee, the social worker offers assistance, such as writing a letter (with the client's written permission) to the trustee or court. If the court or trustee does not respond within 30 days, a memo is submitted to the appropriate Program Section in FSSD explaining the situation, including the efforts made to obtain a response to the petition/request.
      • (iii) When the trustee's response to the petition or request is explicit as to the availability of funds, the social worker takes appropriate action. Otherwise, the information is submitted under cover memo to FSSD. If necessary, a decision will be obtained from the Legal Division about the availability of the funds held in trust.
      • (iv) A decision regarding trust availability will be rendered as:
        • (I) Trust is not available. The trust monies are considered unavailable to the child(ren) and further review is not needed unless the trust instrument is amended.
        • (Il) Trust is available. The trust monies are considered available as a resource in determining eligibility.
    • (B) Periodic review. If the funds are determined to be unavailable to the individual, they are excluded as a resource at that time. However, at the next redetermination or reapplication the county obtains information from the court or trustee regarding any modification to the trust instrument or any disbursements. The information reviewed needs to cover the previous six-month period, or since the last contact if that contact was within the last six months. If either a modification or a disbursement has occurred, the county, sends details to the appropriate Program Section in FSSD where a decision regarding availability of the resource will be made. Any disbursements are to be considered as income the month received. If modification or disbursements have not occurred, the funds continue to be considered as unavailable.
  • (2) Funds held in trust by Bureau of Indian Affairs (BIA). Interests of individual Indians in trust or restricted lands shall not be considered a resource in determining eligibility for assistance under the Social Security Act or any other federal or federally assisted program.
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