Text: HF02354 Text: HF02356 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 634B.1 DEFINITIONS. 1 2 As used in this chapter, unless the context otherwise 1 3 requires: 1 4 1. "Person with a disability" means a person to whom one 1 5 of the following applies, prior to the creation of a trust 1 6 which otherwise qualifies as a personal needs trust for the 1 7 person's benefit: 1 8 a. Is considered to be a person with a disability under 1 9 the disability criteria specified in Title II or Title XVI of 1 10 the federal Social Security Act. 1 11 b. Has a physical or mental illness or condition which, in 1 12 the expected natural course of the illness or condition, to a 1 13 reasonable degree of medical certainty, is expected to 1 14 continue for a continuous period of twelve months or more and 1 15 substantially impairs the person's ability to provide for the 1 16 person's care or custody. 1 17 2. "Personal needs trust" means an irrevocable trust 1 18 created for the benefit of a person with a disability and 1 19 funded with income or lump sum amounts received as damages or 1 20 for any other purpose to or for the benefit of the trust 1 21 beneficiary under the terms of a settlement agreement or 1 22 judgment. 1 23 Sec. 2. NEW SECTION. 634B.2 PERSONAL NEEDS TRUST – 1 24 REQUIREMENTS. 1 25 1. A personal needs trust established in compliance with 1 26 this chapter is in keeping with the public policy of the state 1 27 and is enforceable. 1 28 2. A personal needs trust established under this chapter 1 29 shall comply with all of the following: 1 30 a. Shall be established by a parent, grandparent, legal 1 31 guardian, or spouse of the beneficiary within six months of 1 32 receipt of the initial amount under the terms of a settlement 1 33 agreement or judgment. 1 34 b. Shall be established as a discretionary trust for the 1 35 purposes of providing a supplemental source of payment of 2 1 expenses which include but are not limited to the reasonable 2 2 living expenses and basic needs of a person with a disability 2 3 only if benefits from publicly funded benefit programs are not 2 4 sufficient to provide adequately for those expenses or needs. 2 5 c. Shall contain provisions which prohibit disbursements 2 6 that would result in replacement, reduction, or substitution 2 7 of publicly funded benefits otherwise available to the 2 8 beneficiary or in rendering the beneficiary ineligible for 2 9 publicly funded benefits. The personal needs trust shall 2 10 provide for distributions only in a manner and for the 2 11 purposes that supplement or complement the benefits available 2 12 under medical assistance, state supplementary assistance, and 2 13 other publicly funded benefit programs for persons with 2 14 disabilities. 2 15 3. For the purpose of establishing eligibility of a person 2 16 as a beneficiary of a personal needs trust, disability may be 2 17 established conclusively by the written opinion of a licensed 2 18 professional who is qualified to diagnose the injury, illness, 2 19 or condition, if confirmed by the written opinion of a second 2 20 licensed professional who is also qualified to diagnose the 2 21 illness, injury, or condition. 2 22 4. The trust income and assets of a personal needs trust 2 23 are considered available to the beneficiary for medical 2 24 assistance or other public assistance program purposes to the 2 25 extent that income and assets are considered available in 2 26 accordance with the methodology applicable to a particular 2 27 program. 2 28 5. A personal needs trust is not subject to administration 2 29 in the Iowa district court sitting in probate. A trustee of a 2 30 personal needs trust may disburse both income and principal in 2 31 any amount according to the terms of the trust document, 2 32 without the supervision or approval of the court. 2 33 6. The trustee of a personal needs trust may, at the 2 34 trustee's discretion, use income and principal for expenses 2 35 associated directly with the beneficiary's disability, and for 3 1 expenses that are solely supplemental in nature to improve the 3 2 beneficiary's quality of life as determined by the trustee. 3 3 7. Following the death of the beneficiary of a personal 3 4 needs trust, the state may file a claim against the personal 3 5 needs trust for payment of any debt due and owing the 3 6 department of human services for payment of medical assistance 3 7 paid on behalf of the beneficiary. 3 8 8. A personal needs trust is not enforceable if the 3 9 beneficiary becomes a patient or resident after sixty-four 3 10 years of age in a state institution or nursing facility for 3 11 six months or more and, due to the beneficiary's medical need 3 12 for care in an institutional setting, there is no reasonable 3 13 expectation, as certified by the beneficiary's attending 3 14 physician, that the beneficiary will be discharged from the 3 15 facility. For the purposes of this subsection, a beneficiary 3 16 participating in a group residential program is not a patient 3 17 or resident of a state institution or nursing facility. 3 18 EXPLANATION 3 19 This bill provides for the establishment of personal needs 3 20 trusts which are established for the benefit of persons with 3 21 disabilities and which are funded by amounts received through 3 22 a settlement agreement or judgment. The trust is to be 3 23 established as a discretionary trust with income and assets of 3 24 the trust used only for supplementing existing funding sources 3 25 for payment of the needs of the person with a disability. 3 26 Disbursement of the funds is prohibited if the result would be 3 27 a replacement, reduction, or substitution of public funds or 3 28 would render the beneficiary ineligible for a publicly funded 3 29 benefit. Establishment of eligibility of a person as a person 3 30 with a disability may be provided by the written opinion of a 3 31 licensed professional who is qualified to diagnose the injury, 3 32 illness, or condition if the opinion is confirmed by a second 3 33 qualified person. The bill provides that the trust income and 3 34 assets are considered to be available to the beneficiary for 3 35 the purposes of determining the beneficiary's eligibility for 4 1 public programs to the extent that a particular program's 4 2 methodology requires. A personal needs trust is not subject 4 3 to administration by the probate court and the trustee may 4 4 make disbursements at the trustee's discretion, in accordance 4 5 with the terms of the trust document, for expenses associated 4 6 directly with the beneficiary's disability and for expenses 4 7 which are solely supplemental in nature if the beneficiary's 4 8 quality of life will be enhanced, without the supervision or 4 9 approval of the court. A personal needs trust is not 4 10 available to a person who is a patient or resident of a state 4 11 institution or nursing facility for six months or more after 4 12 the age of 64 if the person is not reasonably expected to be 4 13 discharged from the facility. 4 14 LSB 4112HH 76 4 15 pf/cf/24
Text: HF02354 Text: HF02356 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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