Text: HSB00540 Text: HSB00542 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 523A.8, subsection 1, paragraph k, Code 1 2 Supplement 1995, is amended to read as follows: 1 3 k. State that if, after all payments are made in 1 4 accordance with the conditions and terms of the agreement for 1 5 funeral merchandise or funeral services, any fundsremaining1 6 remain inanthe nonguaranteed irrevocable burial trust fund 1 7from which the costs of funeral merchandise and funeral1 8services are paid shall be returned to the estate of the1 9deceased individual for purposes of probate pursuant to1 10chapter 633 or if the estate is not subject to probate and if1 11the deceased was a recipient of medical assistance and a debt1 12is due the department of human services pursuant to section1 13249A.5, the remaining funds shall be available for payment of1 14the debt, the seller shall disburse the remaining funds to a 1 15 personal representative of the deceased as defined in section 1 16 633.3, or to the deceased's surviving next-of-kin, or to the 1 17 director of human services, in accordance with section 1 18 523A.8A. 1 19 Sec. 2. NEW SECTION. 523A.8A DISBURSEMENT OF REMAINING 1 20 FUNDS IN NONGUARANTEED IRREVOCABLE BURIAL TRUST FUND. 1 21 1. As used in this section: 1 22 a. "Burial trust fund" means a nonguaranteed irrevocable 1 23 burial trust fund. 1 24 b. "Director" means the director of human services. 1 25 c. "Personal representative" means personal representative 1 26 as defined in section 633.3. 1 27 2. If funds remain in a nonguaranteed irrevocable burial 1 28 trust fund after all payments are made in accordance with the 1 29 conditions and terms of the agreement for funeral merchandise 1 30 or funeral services, the seller shall comply with all of the 1 31 following: 1 32 a. The seller shall provide written notice by mail to the 1 33 director in accordance with subsection 3. 1 34 b. Following a period of at least sixty days after the 1 35 mailing of the notice to the director, if the director has not 2 1 responded to the seller regarding a claim to the remaining 2 2 funds, the seller shall disburse any remaining funds from the 2 3 burial trust fund as follows: 2 4 (1) If within the sixty-day period the seller receives a 2 5 claim from the personal representative of the deceased, any 2 6 remaining funds shall be disbursed to the personal 2 7 representative. 2 8 (2) If within the sixty-day period the seller has not 2 9 received a response regarding a claim by the director and has 2 10 not received a claim from the personal representative, any 2 11 remaining funds shall be disbursed to any person who is 2 12 identified as the next-of-kin of the deceased, if the person 2 13 has filed an affidavit in accordance with subsection 5. 2 14 3. The notice mailed to the director shall meet all of the 2 15 following requirements and is subject to all of the following 2 16 conditions: 2 17 a. The notice shall be mailed with postage prepaid. 2 18 b. If the notice is sent by regular mail, the sixty-day 2 19 period for receipt of a response is deemed to commence three 2 20 days following the date of mailing. 2 21 c. If the notice is sent by certified mail, the sixty-day 2 22 period for receipt of a response is deemed to commence on the 2 23 date of mailing. 2 24 d. The notice shall provide all of the following 2 25 information: 2 26 (1) The current name, address, and telephone number of the 2 27 seller. 2 28 (2) The full name of the deceased. 2 29 (3) The date of the deceased's death. 2 30 (4) The amount of the funds remaining in the burial trust 2 31 fund. 2 32 (5) A statement that any claim by the director shall be 2 33 received by the seller within sixty days of the date of 2 34 mailing of the notice. 2 35 e. A notice in substantially the following form complies 3 1 with this subsection: 3 2 "To: The Director of Human Services 3 3 From: (Seller's Name, Current Address, and Telephone 3 4 Number) 3 5 You are hereby notified that (name of deceased), who had an 3 6 irrevocable burial trust fund, has died, that final payment 3 7 for funeral merchandise and funeral services has been made, 3 8 and that (remaining amount) remains in the irrevocable burial 3 9 trust fund. 3 10 The above-named seller must receive a written response 3 11 regarding any claim by the director within sixty days of the 3 12 mailing of this notice to the director. 3 13 If the above-named seller does not receive a written 3 14 response regarding a claim by the director within sixty days 3 15 of the mailing of this notice, the seller may dispose of the 3 16 remaining funds in accordance with section 523A.8A, Code of 3 17 Iowa." 3 18 4. Upon receipt of the seller's written notice, the 3 19 director shall determine if a debt is due the department of 3 20 human services pursuant to section 249A.5. If the director 3 21 determines that a debt is owing, the director shall provide a 3 22 written response to the seller within sixty days of the 3 23 mailing of the seller's notice. If the director does not 3 24 respond with a claim within the sixty-day period, any claim 3 25 made by the director shall not be enforceable against the 3 26 seller, the trust, or a trustee. 3 27 5. A personal representative who wishes to make a claim 3 28 shall send written notice of the claim to the seller. If the 3 29 seller does not receive any claim from a personal 3 30 representative within the sixty-day period provided for 3 31 response by the director regarding a claim, the claim of the 3 32 personal representative shall not be enforceable against the 3 33 seller, the trust, or a trustee. 3 34 6. Any person other than a personal representative or the 3 35 director claiming an interest in the remaining funds shall 4 1 submit all of the following in an affidavit claiming an 4 2 interest: 4 3 a. The full name, current address, and telephone number of 4 4 the claimant. 4 5 b. The claimant's relationship to the deceased. 4 6 c. The name of any surviving next-of-kin of the deceased, 4 7 and the relationship of any named surviving next-of-kin. 4 8 d. That the claimant has no knowledge of the existence of 4 9 a personal representative for the deceased's estate. 4 10 7. The seller may retain not more than fifty dollars of 4 11 the remaining funds in the burial trust fund for the 4 12 administrative expenses associated with the requirements of 4 13 this section. 4 14 8. If the funds remaining in a burial trust fund are 4 15 disbursed in accordance with the requirements of this section, 4 16 the seller, the burial trust fund, and any trustee shall not 4 17 be liable to the director, the estate of the deceased, any 4 18 personal representative, or any other interested person for 4 19 the remaining funds and any lien imposed by the director shall 4 20 be unenforceable against the seller, the burial trust fund, or 4 21 any trustee. 4 22 Sec. 3. Section 523E.8, subsection 1, paragraph k, Code 4 23 Supplement 1995, is amended to read as follows: 4 24 k. State that if, after all payments are made in 4 25 accordance with the conditions and terms of the agreement for 4 26 cemetery merchandise, any fundsremainingremain inanthe 4 27 nonguaranteed irrevocable burial trust fundfrom which4 28cemetery merchandise costs are paid shall be returned to the4 29estate of the deceased individual for purposes of probate4 30pursuant to chapter 633 or if the estate is not subject to4 31probate and if the deceased was a recipient of medical4 32assistance and a debt is due the department of human services4 33pursuant to section 249A.5, the remaining funds shall be4 34available for payment of the debt, the seller shall disburse 4 35 the remaining funds to a personal representative of the 5 1 deceased as defined in section 633.3, or to the deceased's 5 2 surviving next-of-kin, or to the director of human services, 5 3 in accordance with section 523A.8A. 5 4 EXPLANATION 5 5 This bill relates to the disbursement of funds remaining in 5 6 a nonguaranteed irrevocable burial trust fund. Under current 5 7 law, following final payment of any funeral merchandise and 5 8 funeral services required under a funeral merchandise and 5 9 funeral services agreement, if the estate of the deceased is 5 10 not subject to probate, and if the deceased was a recipient of 5 11 medical assistance, the department of human services is 5 12 entitled to any remaining funds for payment of any medical 5 13 assistance debt due the department. Due to the confidential 5 14 nature of medical assistance records, however, the department 5 15 is unable to notify a seller of funeral merchandise and 5 16 services of the existence of the debt. The bill provides a 5 17 procedure for a seller of funeral merchandise and services to 5 18 notify the director of human services of any funds remaining 5 19 in a burial trust fund and also provides for the disbursement 5 20 of the remaining funds to either a personal representative or 5 21 the next-of-kin of the deceased, if the director does not 5 22 respond with a claim within 60 days of the mailing of the 5 23 notice. 5 24 LSB 3920HC 76 5 25 pf/cf/24
Text: HSB00540 Text: HSB00542 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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