55-545.03:1 - Certain claims for reimbursement for public assistance. - Virginia Statutes

§ 55-545.03:1. Certain claims for reimbursement for public assistance.

A. Notwithstanding any contrary provision in the trust instrument, if astatute or regulation of the United States or Commonwealth requires abeneficiary to reimburse the Commonwealth or any agency or instrumentalitythereof, for public assistance, including medical assistance, furnished or tobe furnished to the beneficiary, the Attorney General or an attorney actingon behalf of the state agency responsible for the program may file a petitionin chancery in the circuit court having jurisdiction over the trusteerequesting reimbursement. The petition may be filed prior to obtaining ajudgment. The beneficiary, the guardian of his estate, his conservator, orhis committee shall be made a party.

B. Following its review of the circumstances of the case, the court may:

1. Order the trustee to satisfy all or part of the liability out of all orpart of the amounts to which the beneficiary is entitled, whether presentlyor in the future, to the extent the beneficiary has the right under the trustto compel the trustee to pay income or principal to or for the benefit of thebeneficiary; or

2. Regardless of whether the beneficiary has the right to compel the trusteeto pay income or principal to or for the benefit of the beneficiary, orderthe trustee to satisfy all or part of the liability out of all or part of anyfuture payments that the trustee chooses to make to or for the benefit of thebeneficiary in the exercise of discretion under the trust.

C. A duty in the trustee under the instrument to make disbursements in amanner designed to avoid rendering the beneficiary ineligible for publicassistance to which he might otherwise be entitled, however, shall not beconstrued as a right possessed by the beneficiary to compel such payments.

D. The court shall not issue an order pursuant to this section if thebeneficiary is a person who has a medically determined physical or mentaldisability that substantially impairs his ability to provide for his care orcustody, and constitutes a substantial handicap.

(2005, c. 935.)