Full Text of HB4979 102nd General Assembly
HB4979eng 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning prepaid funeral or burial contracts.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Public Aid Code is amended by | 5 | | changing Section 3-1.2 as follows:
| 6 | | (305 ILCS 5/3-1.2) (from Ch. 23, par. 3-1.2)
| 7 | | Sec. 3-1.2. Need. Income available to the person, when | 8 | | added to
contributions in money, substance, or services from | 9 | | other sources,
including contributions from legally | 10 | | responsible relatives, must be
insufficient to equal the grant | 11 | | amount established by Department regulation
for such person.
| 12 | | In determining earned income to be taken into account, | 13 | | consideration
shall be given to any expenses reasonably | 14 | | attributable to the earning of
such income. If federal law or | 15 | | regulations permit or require exemption
of earned or other | 16 | | income and resources, the Illinois Department shall
provide by | 17 | | rule and regulation that the amount of income to be
| 18 | | disregarded be increased (1) to the maximum extent so required | 19 | | and (2)
to the maximum extent permitted by federal law or | 20 | | regulation in effect
as of the date this amendatory Act | 21 | | becomes law. The Illinois Department
may also provide by rule | 22 | | and regulation that the amount of resources to
be disregarded | 23 | | be increased to the maximum extent so permitted or required. |
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| 1 | | Subject to federal approval, resources (for example, land, | 2 | | buildings, equipment, supplies, or tools), including farmland | 3 | | property and personal property used in the income-producing | 4 | | operations related to the farmland (for example, equipment and | 5 | | supplies, motor vehicles, or tools), necessary for | 6 | | self-support, up to $6,000 of the person's equity in the | 7 | | income-producing property, provided that the property produces | 8 | | a net annual income of at least 6% of the excluded equity value | 9 | | of the property, are exempt. Equity value in excess of $6,000 | 10 | | shall not be excluded. If the activity produces income that is | 11 | | less than 6% of the exempt equity due to reasons beyond the | 12 | | person's control (for example, the person's illness or crop | 13 | | failure) and there is a reasonable expectation that the | 14 | | property will again produce income equal to or greater than 6% | 15 | | of the equity value (for example, a medical prognosis that the | 16 | | person is expected to respond to treatment or that | 17 | | drought-resistant corn will be planted), the equity value in | 18 | | the property up to $6,000 is exempt. If the person owns more | 19 | | than one piece of property and each produces income, each | 20 | | piece of property shall be looked at to determine whether the | 21 | | 6% rule is met, and then the amounts of the person's equity in | 22 | | all of those properties shall be totaled to determine whether | 23 | | the total equity is $6,000 or less. The total equity value of | 24 | | all properties that is exempt shall be limited to $6,000.
| 25 | | In determining the resources of an individual or any | 26 | | dependents, the
Department shall exclude from consideration |
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| 1 | | the value of funeral and burial
spaces, funeral and
burial | 2 | | insurance the proceeds of which can only be used to pay the | 3 | | funeral
and burial expenses of the insured and funds | 4 | | specifically set aside for the
funeral and burial arrangements | 5 | | of the individual or his or her dependents,
including prepaid | 6 | | funeral and burial plans, to the same extent that such
items | 7 | | are excluded from consideration under the federal Supplemental
| 8 | | Security Income program (SSI). At any time after submitting an | 9 | | application for medical assistance and before a final | 10 | | determination of eligibility has been made by the Department, | 11 | | an applicant may use available resources to purchase one of | 12 | | the prepaid funeral or burial contracts exempted under this | 13 | | Section. | 14 | | Prepaid funeral or burial contracts are exempt to the | 15 | | following extent:
| 16 | | (1) Funds in a revocable prepaid funeral or burial | 17 | | contract are exempt up to $1,500, except that any portion | 18 | | of a contract that clearly represents the purchase of | 19 | | burial space, as that term is defined for purposes of the | 20 | | Supplemental Security Income program, is exempt regardless | 21 | | of value. | 22 | | (2) Funds in an irrevocable prepaid funeral or burial | 23 | | contract are exempt up to $5,874, except that any portion | 24 | | of a contract that clearly represents the purchase of | 25 | | burial space, as that term is defined for purposes of the | 26 | | Supplemental Security Income program, is exempt regardless |
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| 1 | | of value. This amount shall be adjusted annually for any | 2 | | increase in the Consumer Price Index. The amount exempted | 3 | | shall be limited to the price of the funeral goods and | 4 | | services to be provided upon death. The contract must | 5 | | provide a complete description of the funeral goods and | 6 | | services to be provided and the price thereof. Any amount | 7 | | in the contract not so specified shall be treated as a | 8 | | transfer of assets for less than fair market value. | 9 | | (3) A prepaid, guaranteed-price funeral or burial | 10 | | contract, funded by an irrevocable assignment of a | 11 | | person's life insurance policy to a trust, is exempt. The | 12 | | amount exempted shall be limited to the amount of the | 13 | | insurance benefit designated for the cost of the funeral | 14 | | goods and services to be provided upon the person's death. | 15 | | The contract must provide a complete description of the | 16 | | funeral goods and services to be provided and the price | 17 | | thereof. Any amount in the contract not so specified shall | 18 | | be treated as a transfer of assets for less than fair | 19 | | market value. The trust must include a statement that, | 20 | | upon the death of the person, the State will receive all | 21 | | amounts remaining in the trust, including any remaining | 22 | | payable proceeds under the insurance policy up to an | 23 | | amount equal to the total medical assistance paid on | 24 | | behalf of the person. The trust is responsible for | 25 | | ensuring that the provider of funeral services under the | 26 | | contract receives the proceeds of the policy when it |
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| 1 | | provides the funeral goods and services specified under | 2 | | the contract. The irrevocable assignment of ownership of | 3 | | the insurance policy must be acknowledged by the insurance | 4 | | company. | 5 | | Notwithstanding any other provision of this Code to the | 6 | | contrary, an irrevocable trust containing the resources of a | 7 | | person who is determined to have a disability shall be | 8 | | considered exempt from consideration. A pooled trust must be | 9 | | established and managed by a non-profit association that pools | 10 | | funds but maintains a separate account for each beneficiary. | 11 | | The trust may be established by the person, a parent, | 12 | | grandparent, legal guardian, or court. It must be established | 13 | | for the sole benefit of the person and language contained in | 14 | | the trust shall stipulate that any amount remaining in the | 15 | | trust (up to the amount expended by the Department on medical | 16 | | assistance) that is not retained by the trust for reasonable | 17 | | administrative costs related to wrapping up the affairs of the | 18 | | subaccount shall be paid to the Department upon the death of | 19 | | the person. After a person reaches age 65, any funding by or on | 20 | | behalf of the person to the trust shall be treated as a | 21 | | transfer of assets for less than fair market value unless the | 22 | | person is a ward of a county public guardian or the State | 23 | | Guardian pursuant to Section 13-5 of the Probate Act of 1975 or | 24 | | Section 30 of the Guardianship and Advocacy Act and lives in | 25 | | the community, or the person is a ward of a county public | 26 | | guardian or the State Guardian pursuant to Section 13-5 of the |
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| 1 | | Probate Act of 1975 or Section 30 of the Guardianship and | 2 | | Advocacy Act and a court has found that any expenditures from | 3 | | the trust will maintain or enhance the person's quality of | 4 | | life. If the trust contains proceeds from a personal injury | 5 | | settlement, any Department charge must be satisfied in order | 6 | | for the transfer to the trust to be treated as a transfer for | 7 | | fair market value. | 8 | | The homestead shall be exempt from consideration except to | 9 | | the extent
that it meets the income and shelter needs of the | 10 | | person. "Homestead"
means the dwelling house and contiguous | 11 | | real estate owned and occupied
by the person, regardless of | 12 | | its value. Subject to federal approval, a person shall not be | 13 | | eligible for long-term care services, however, if the person's | 14 | | equity interest in his or her homestead exceeds the minimum | 15 | | home equity as allowed and increased annually under federal | 16 | | law. Subject to federal approval, on and after the effective | 17 | | date of this amendatory Act of the 97th General Assembly, | 18 | | homestead property transferred to a trust shall no longer be | 19 | | considered homestead property.
| 20 | | Occasional or irregular gifts in cash, goods or services | 21 | | from persons
who are not legally responsible relatives which | 22 | | are of nominal value or
which do not have significant effect in | 23 | | meeting essential requirements
shall be disregarded. The | 24 | | eligibility of any applicant for or recipient
of public aid | 25 | | under this Article is not affected by the payment of any
grant | 26 | | under the "Senior Citizens and Disabled Persons Property Tax
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| 1 | | Relief Act" or any distributions or items of
income described | 2 | | under subparagraph (X) of paragraph (2) of subsection (a) of
| 3 | | Section 203 of the Illinois Income Tax Act.
| 4 | | The Illinois Department may, after appropriate | 5 | | investigation, establish
and implement a consolidated standard | 6 | | to determine need and eligibility
for and amount of benefits | 7 | | under this Article or a uniform cash supplement
to the federal | 8 | | Supplemental Security Income program for all or any part
of | 9 | | the then current recipients under this Article; provided, | 10 | | however, that
the establishment or implementation of such a | 11 | | standard or supplement shall
not result in reductions in | 12 | | benefits under this Article for the then current
recipients of | 13 | | such benefits.
| 14 | | (Source: P.A. 97-689, eff. 6-14-12; 98-104, eff. 7-22-13.)
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