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Senate File 60 - IntroducedA Bill ForAn Act 1relating to the transfer between trusts for persons with
2disabilities.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 12I.3, subsection 1, Code 2021, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. g. Any funds retained in a medical
4assistance special needs trust pursuant to chapter 633C, or in
5a supplemental needs trust pursuant to chapter 634A, may be
6transferred to the Iowa ABLE savings plan trust account of a
7designated beneficiary who is also the beneficiary of any such
8trust, in accordance with the applicable provisions of chapters
9633C, 634A, and this chapter.
10 Sec. 2. Section 633C.2, Code 2021, is amended to read as
11follows:
12633C.2 Disposition of medical assistance special needs
13trusts.
14Any income or assets added to or received by and any income
15or principal retained in a medical assistance special needs
16trust shall be used in accordance with a standard that is
17no more restrictive than specified under federal law. All
18distributions from a medical assistance special needs trust
19shall be for the sole benefit of the beneficiary to enhance
20the quality of life of the beneficiary, and the trustee shall
21have sole discretion regarding such disbursements to ensure
22compliance with beneficiary eligibility requirements. Any
23funds retained in the medical assistance special needs trust of
24a beneficiary who is also a designated beneficiary as defined
25in section 12I.1 may be transferred to the Iowa ABLE savings
26plan trust account of the designated beneficiary in accordance
27with this chapter and chapter 12I. Any distinct disbursement in
28excess of one thousand dollars shall be subject to review by
29the district court sitting in probate. The department shall
30adopt rules pursuant to chapter 17A for the establishment and
31disposition of medical assistance special needs trusts in
32accordance with this section.
33 Sec. 3. Section 634A.2, Code 2021, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 8. Any funds retained in a supplemental
-1-1needs trust of a beneficiary who is also a designated
2beneficiary as defined in section 12I.1 may be transferred to
3the Iowa ABLE savings plan trust account of the designated
4beneficiary in accordance with this chapter and chapter 12I.
5EXPLANATION
6The inclusion of this explanation does not constitute agreement with
7the explanation’s substance by the members of the general assembly.
8This bill relates to the transfer between trusts for persons
9with disabilities.
10The bill provides that any funds retained in a medical
11assistance special needs trust or in a supplemental needs trust
12of a beneficiary with a disability who is also a designated
13beneficiary of an Iowa ABLE saving plan trust account may be
14transferred to the Iowa ABLE savings plan trust account of the
15designated beneficiary in accordance with the provisions of the
16Code chapters applicable to the specific trusts.
17The disabilities expenses savings plan trust is also known
18as the Iowa ABLE savings plan trust which was established as
19a qualified ABLE program under section 529A of the Internal
20Revenue Code. The purpose of ABLE savings accounts is to
21encourage and assist individuals and families in saving
22private funds for the purpose of supporting individuals with
23disabilities to maintain health, independence, and quality
24of life and to provide secure funding for disability-related
25expenses on behalf of designated beneficiaries with
26disabilities that will supplement, but not supplant, benefits
27provided through private insurance, the Medicaid program,
28the federal supplemental security income program, and other
29sources. ABLE savings accounts allow eligible individuals the
30opportunity to save and fund a variety of qualified disability
31expenses without endangering eligibility for certain benefits
32such as Medicaid and supplemental security income.
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2disabilities.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 12I.3, subsection 1, Code 2021, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. g. Any funds retained in a medical
4assistance special needs trust pursuant to chapter 633C, or in
5a supplemental needs trust pursuant to chapter 634A, may be
6transferred to the Iowa ABLE savings plan trust account of a
7designated beneficiary who is also the beneficiary of any such
8trust, in accordance with the applicable provisions of chapters
9633C, 634A, and this chapter.
10 Sec. 2. Section 633C.2, Code 2021, is amended to read as
11follows:
12633C.2 Disposition of medical assistance special needs
13trusts.
14Any income or assets added to or received by and any income
15or principal retained in a medical assistance special needs
16trust shall be used in accordance with a standard that is
17no more restrictive than specified under federal law. All
18distributions from a medical assistance special needs trust
19shall be for the sole benefit of the beneficiary to enhance
20the quality of life of the beneficiary, and the trustee shall
21have sole discretion regarding such disbursements to ensure
22compliance with beneficiary eligibility requirements. Any
23funds retained in the medical assistance special needs trust of
24a beneficiary who is also a designated beneficiary as defined
25in section 12I.1 may be transferred to the Iowa ABLE savings
26plan trust account of the designated beneficiary in accordance
27with this chapter and chapter 12I. Any distinct disbursement in
28excess of one thousand dollars shall be subject to review by
29the district court sitting in probate. The department shall
30adopt rules pursuant to chapter 17A for the establishment and
31disposition of medical assistance special needs trusts in
32accordance with this section.
33 Sec. 3. Section 634A.2, Code 2021, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 8. Any funds retained in a supplemental
-1-1needs trust of a beneficiary who is also a designated
2beneficiary as defined in section 12I.1 may be transferred to
3the Iowa ABLE savings plan trust account of the designated
4beneficiary in accordance with this chapter and chapter 12I.
5EXPLANATION
6The inclusion of this explanation does not constitute agreement with
7the explanation’s substance by the members of the general assembly.
8This bill relates to the transfer between trusts for persons
9with disabilities.
10The bill provides that any funds retained in a medical
11assistance special needs trust or in a supplemental needs trust
12of a beneficiary with a disability who is also a designated
13beneficiary of an Iowa ABLE saving plan trust account may be
14transferred to the Iowa ABLE savings plan trust account of the
15designated beneficiary in accordance with the provisions of the
16Code chapters applicable to the specific trusts.
17The disabilities expenses savings plan trust is also known
18as the Iowa ABLE savings plan trust which was established as
19a qualified ABLE program under section 529A of the Internal
20Revenue Code. The purpose of ABLE savings accounts is to
21encourage and assist individuals and families in saving
22private funds for the purpose of supporting individuals with
23disabilities to maintain health, independence, and quality
24of life and to provide secure funding for disability-related
25expenses on behalf of designated beneficiaries with
26disabilities that will supplement, but not supplant, benefits
27provided through private insurance, the Medicaid program,
28the federal supplemental security income program, and other
29sources. ABLE savings accounts allow eligible individuals the
30opportunity to save and fund a variety of qualified disability
31expenses without endangering eligibility for certain benefits
32such as Medicaid and supplemental security income.
-2-pf/rh