Text: HF00491 Text: HF00493 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 492 1 2 1 3 AN ACT 1 4 RELATING TO SUPPLEMENTAL NEEDS TRUSTS FOR PERSONS WITH 1 5 DISABILITIES. 1 6 1 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 8 1 9 Section 1. NEW SECTION. 634A.1 DEFINITIONS. 1 10 As used in this chapter, unless the context otherwise 1 11 requires: 1 12 1. "Person with a disability" means a person to whom one 1 13 of the following applies, prior to creation of a trust which 1 14 otherwise qualifies as a supplemental needs trust for the 1 15 person's benefit: 1 16 a. Is considered to be a person with a disability under 1 17 the disability criteria specified in Title II or Title XVI of 1 18 the federal Social Security Act. 1 19 b. Has a physical or mental illness or condition which, in 1 20 the expected natural course of the illness or condition, to a 1 21 reasonable degree of medical certainty, is expected to 1 22 continue for a continuous period of twelve months or more and 1 23 substantially impairs the person's ability to provide for the 1 24 person's care or custody. 1 25 2. "Supplemental needs trust" means an inter vivos or 1 26 testamentary trust created for the benefit of a person with a 1 27 disability and funded by a person other than the trust 1 28 beneficiary or the beneficiary's spouse, and which is declared 1 29 to be a supplemental needs trust in the instrument creating 1 30 the trust. "Supplemental needs trust" shall include, but is 1 31 not limited to, a trust created for the benefit of a person 1 32 with a disability and funded solely with moneys awarded as 1 33 damages in a personal injury case or moneys received in the 1 34 settlement of a personal injury case provided that the trust 1 35 is created within six months of receiving the award or 2 1 settlement, the trust is irrevocable, the beneficiary is not 2 2 named a trustee of the trust, and the instrument creating the 2 3 trust declares the trust to be a supplemental needs trust. 2 4 Sec. 2. NEW SECTION. 634A.2 SUPPLEMENTAL NEEDS TRUST 2 5 REQUIREMENTS. 2 6 1. A supplemental needs trust established in compliance 2 7 with this chapter is in keeping with the public policy of this 2 8 state and is enforceable. 2 9 2. A supplemental needs trust established under this 2 10 chapter shall comply with all of the following: 2 11 a. Shall be established as a discretionary trust for the 2 12 purpose of providing a supplemental source for payment of 2 13 expenses which include but are not limited to the reasonable 2 14 living expenses and basic needs of a person with a disability 2 15 only if benefits from publicly funded benefit programs are not 2 16 sufficient to provide adequately for those expenses and needs. 2 17 b. Shall contain provisions which prohibit disbursements 2 18 that would result in replacement, reduction, or substitution 2 19 for publicly funded benefits otherwise available to the 2 20 beneficiary or in rendering the beneficiary ineligible for 2 21 publicly funded benefits. The supplemental needs trust shall 2 22 provide for distributions only in a manner and for purposes 2 23 that supplement or complement the benefits available under 2 24 medical assistance, state supplementary assistance, and other 2 25 publicly funded benefit programs for persons with 2 26 disabilities. 2 27 3. For the purpose of establishing eligibility of a person 2 28 as a beneficiary of a supplemental needs trust, disability may 2 29 be established conclusively by the written opinion of a 2 30 licensed professional who is qualified to diagnose the illness 2 31 or condition, if confirmed by the written opinion of a second 2 32 licensed professional who is also qualified to diagnose the 2 33 illness or condition. 2 34 4. A supplemental needs trust is not enforceable if the 2 35 trust beneficiary becomes a patient or resident after sixty- 3 1 four years of age in a state institution or nursing facility 3 2 for six months or more and, due to the beneficiary's medical 3 3 need for care in an institutional setting, there is no 3 4 reasonable expectation, as certified by the beneficiary's 3 5 attending physician, that the beneficiary will be discharged 3 6 from the facility. For the purposes of this subsection, a 3 7 beneficiary participating in a group residential program is 3 8 not a patient or resident of a state institution or nursing 3 9 facility. 3 10 5. The trust income and assets of a supplemental needs 3 11 trust are considered available to the beneficiary for medical 3 12 assistance or other public assistance program purposes to the 3 13 extent that income and assets are considered available in 3 14 accordance with the methodology applicable to a particular 3 15 program. 3 16 6. A supplemental needs trust is not subject to 3 17 administration in the Iowa district court sitting in probate. 3 18 A trustee of a supplemental needs trust has all powers and 3 19 shall be subject to all the duties and liabilities of a 3 20 trustee as provided in the probate code, except the duty of 3 21 reporting to or obtaining approval of the court. 3 22 7. Notwithstanding the prohibition of the funding of a 3 23 supplemental needs trust by the beneficiary or the 3 24 beneficiary's spouse, a supplemental needs trust may be 3 25 established with the proceeds of back payments made by the 3 26 United States social security administration resulting from a 3 27 judgment regarding the regulatory schemes for determination of 3 28 the disability of a child. 3 29 3 30 3 31 3 32 RON J. CORBETT 3 33 Speaker of the House 3 34 3 35 4 1 4 2 MARY E. KRAMER 4 3 President of the Senate 4 4 4 5 I hereby certify that this bill originated in the House and 4 6 is known as House File 492, Seventy-seventh General Assembly. 4 7 4 8 4 9 4 10 ELIZABETH ISAACSON 4 11 Chief Clerk of the House 4 12 Approved , 1997 4 13 4 14 4 15 4 16 TERRY E. BRANSTAD 4 17 Governor
Text: HF00491 Text: HF00493 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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