House File 648 - Reprinted HOUSE FILE 648 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO HF 198) (As Amended and Passed by the House May 12, 2015 ) A BILL FOR An Act relating to Medicaid special needs trusts. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 HF 648 (2) 86 pf/nh/md
H.F. 648 Section 1. Section 633C.1, subsection 8, Code 2015, is 1 amended by striking the subsection. 2 Sec. 2. Section 633C.2, Code 2015, is amended by striking 3 the section and inserting in lieu thereof the following: 4 633C.2 Disposition of medical assistance special needs 5 trusts. 6 Any income or assets added to or received by and any income 7 or principal retained in a medical assistance special needs 8 trust shall be used in accordance with a standard that is 9 no more restrictive than specified under federal law. All 10 distributions from a medical assistance special needs trust 11 shall be for the sole benefit of the beneficiary to enhance 12 the quality of life of the beneficiary, and the trustee shall 13 have sole discretion regarding such disbursements to ensure 14 compliance with beneficiary eligibility requirements. Any 15 distinct disbursement in excess of one thousand dollars shall 16 be subject to review by the district court sitting in probate. 17 The department shall adopt rules pursuant to chapter 17A for 18 the establishment and disposition of medical assistance special 19 needs trusts in accordance with this section. 20 Sec. 3. Section 633C.4, subsection 2, Code 2015, is amended 21 to read as follows: 22 2. The trustee of a medical assistance income trust or 23 a medical assistance special needs trust is a fiduciary for 24 purposes of chapter 633A and, in the exercise of the trustee’s 25 fiduciary duties, the state shall be considered a beneficiary 26 of the trust. Regardless of the terms of the trust, the 27 trustee shall not take any action that is not prudent in light 28 of the state’s interest in the trust. Notwithstanding any 29 provision of chapter 633A to the contrary, the trustee of a 30 medical assistance special needs trust shall be subject to the 31 jurisdiction of the district court sitting in probate and shall 32 submit an accounting of the disposition of the trust to the 33 district court sitting in probate on an annual basis. 34 -1- HF 648 (2) 86 pf/nh/md 1/ 1