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Instructions for Submitting Trusts

Please submit a complete copy of the trust agreement, along with all supporting documents (Note: documents entitled “Certification of Trust” or “Affidavit of Trust” are not a complete copy of the trust agreement). In addition, please reference the information provided below before finalizing your submission or inquiry.

For Income Trusts:

  • If the trust was signed on or after September 30, 2024, confirm that it is on the current form titled Irrevocable Income Trust Agreement. 
  • Confirm that the date and the applicant/member’s legal name are on the trust agreement and that the settlor and trustee have signed page 7 of the trust agreement. Notarization of these signatures is preferred but not required. 
  • If the documents were signed by someone other than the applicant/member on their behalf, include a copy of the document(s) evidencing this individual’s authority to act on behalf of the member/applicant, which may include: 
    • Power of Attorney
    • Letters of Conservatorship 
    • Letters of Guardianship 
    • Court Order 
  • If providing one of the above documents, confirm that it expressly grants the person signing the authority to establish the trust on behalf of the applicant/member. Under the laws of Colorado, the power to create an income trust is not included in the general statutory powers given to agents, conservators, guardians, or other fiduciaries. Further, for Letters, the general form language for these court filings expressly excludes the power to create a trust by stating that their authority is “subject to the exclusions in § 15-14-411, C.R.S,” so please ensure that there is additional language on the filing expressly granting the power to create a trust.

For Disability Trusts:

  • If the trust assets include a personal injury judgment, award, settlement, or the like, please provide: 
    • Proof of satisfaction of any Medicaid lien or confirmation that no lien was made (Note: If medical claims related to the underlying incident were paid by the Department, an automatic statutory lien was created under C.R.S. § 25-5.4-301(5)). Typically, these liens are satisfied during the settlement process. The member or their representative may contact the Department’s Tort and Casualty Unit in the Third-Party Liability and Recoveries section for a letter evidencing satisfaction of a lien or confirmation that no lien was made. They can be reached by email at Tort.Casualty@state.co.us
    • Confirmation that either this is the complete settlement or that additional funds will be paid to the member/applicant or the trust. A copy of the Settlement Order is preferred, or if none, an email from the attorney or the trustee is sufficient. 
    • If an annuity or any other means for periodic payments is part of the settlement, the Department requires proof that the trust or the Department is named as the remainder beneficiary of any such payments on death. To avoid inclusion of these payments in income, information on whether the annuity has been irrevocably assigned to the trust should also be provided. A copy of the annuity contract and any corresponding court orders are usually sufficient. 
  • If a personal injury judgment is not involved but the trust assets include an annuity or other periodic payments (e.g., child support or alimony payments), a copy of the contract or court order and information on whether the payments were irrevocably assigned to the trust must also be provided.

For All Trusts:

Please ensure the following: 

  • Trustee contact information is available and up to date. 
  • A complete copy of the trust agreement is being submitted, including, but not limited to, any schedules, amendments, or restatements. Any other documents impacting the administration of the trust or its terms should also be submitted, including documents related to a change of trustee or any other document impacting the administration of the trust or the member/applicant’s interest in the trust. 
  • Complete funding/asset information is being submitted, including the source and amount of all funds or other assets transferred into the trust. For newly created trusts, this usually includes a complete and accurate Schedule A. For older trusts, provide an accounting showing all assets contributed to and distributions made from the Trust during the five-year look-back period.