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A revocable trust is a trust that the creator of the trust may amend or end (revoke). When there is <br />a revocable trust, the creator has access to the funds in the trust account. <br /> A revocable trust that is under the control of the family is included in net family assets when <br />the grantor is a member of the assisted family. If a revocable trust is included in the <br />calculation of net family assets, then the actual income earned by the revocable trust is also <br />included in the family’s income. For example, interest earned or rental income if the property <br />is held in the trust. The PHA must calculate imputed income on the revocable trust if net <br />family assets are more than the HUD-published threshold amount, which is adjusted annually <br />and listed in HUD’s Inflation Adjusted Values tables ($50,000 for 2024, and $51,600 for <br />2025), and actual income from the trust cannot be calculated (e.g., if the trust is comprised of <br />farmland that is not in use). <br /> A revocable trust that is not under the control of the family is excluded from net family <br />assets. This happens when a member of the assisted family is the beneficiary of a revocable <br />trust, but the grantor is not a member of the assisted family. In this case the beneficiary does <br />not “own” the revocable trust, and the value of the trust is excluded from net family assets. <br />For the revocable trust to be considered excluded from net family assets, no family or <br />household member may be the account’s trustee. <br />For both irrevocable and revocable trusts, if the value of the trust is not considered part of net <br />family assets, then distributions from the trust are treated as follows: <br /> All distributions from the trust’s principal are excluded from income. <br /> Distributions of income earned by the trust (i.e., interest, dividends, realized gains, or other <br />earnings on the trust’s principal), are included as income unless the distribution is used to pay <br />for the health and medical expenses for a minor. <br />Retirement Accounts <br />Company Retirement/Pension Accounts <br />In order to correctly include or exclude as an asset any amount held in a company retirement or <br />pension account by an employed person, the PHA must know whether the money is accessible <br />before retirement [HCV GB, p. 5-26]. <br />While a family member is employed, only the amount the family member can withdraw without <br />retiring or terminating employment is counted as an asset [HCV GB, p. 5-26]. <br />After a family member retires or terminates employment, any amount distributed to the family <br />member is counted as a periodic payment or a lump-sum receipt, as appropriate [HCV GB, p. 5- <br />26], except to the extent that it represents funds invested in the account by the family member. <br />(For more on periodic payments, see section 6-I.H.) The balance in the account is counted as an <br />asset only if it remains accessible to the family member. <br />IRA, Keogh, and Similar Retirement Savings Accounts <br />IRA, Keogh, and similar retirement savings accounts are counted as assets even though early <br />withdrawal would result in a penalty [HCV GB, p. 5-25]. <br />EXHIBIT 1