(B) The trust established for the applicant must meet the following criteria:

1. (1) the applicant's monthly gross income from all sources, without reference to the trust, exceeds the income eligibility standard for Medicaid then in effect but is less than the average private pay rate for nursing home care for the State;
2. (2) the property used to fund the trust is limited to monthly unearned income owned by the applicant, including any pension payment;
3. (3) the applicant and the state Medicaid program are the sole beneficiaries of the trust;

4. (4) the entire income and corpus of the trust, or as much as may be distributed each month without violating federal requirements for federal financial participation, must be distributed each month for expenses related to the applicant's nursing home care that are approved under the Medicaid program, except that:

   1. (a) an amount reasonably necessary to maintain the existence of the trust, as approved by the Medicaid program, may be retained in the trust; and

   2. (b) deductions may be distributed from the trust to the same extent deductions from the income of a nursing home resident who is not a trust beneficiary are allowed under the Medicaid program, which shall include:

      1. (i) monthly personal needs allowance;
      2. (ii) payments to the beneficiary's community spouse or dependent family members as provided and in accordance with state and federal law;