Full Text of SB2602 98th General Assembly
SB2602 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB2602 Introduced 10/9/2013, by Sen. Heather A. Steans SYNOPSIS AS INTRODUCED: |
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305 ILCS 5/3-1.2 | from Ch. 23, par. 3-1.2 |
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Amends the Illinois Public Aid Code. In a provision concerning irrevocable trusts and financial exemptions under the Aid to the Aged, Blind, or Disabled program, provides that after a person reaches age 65, any funding by or on behalf of the person to the trust shall be treated as a transfer of assets for less than fair market value unless the person is a ward of the court, a county public guardian, or the State Guardian (rather than a ward of a county public guardian or the State Guardian) and lives in the community, or the person is a ward of the court, a county public guardian, or the State Guardian (rather than a ward of a county public guardian or the State Guardian) and a court has found that any expenditures from the trust will maintain or enhance the person's quality of life. |
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning public aid.
| 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
disregarded | 18 | | be increased (1) to the maximum extent so required and (2)
to | 19 | | the maximum extent permitted by federal law or regulation in | 20 | | effect
as of the date this amendatory Act becomes law. The | 21 | | Illinois Department
may also provide by rule and regulation | 22 | | that the amount of resources to
be disregarded be increased to | 23 | | the maximum extent so permitted or required. Subject to federal |
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| 1 | | approval, resources (for example, land, buildings, equipment, | 2 | | supplies, or tools), including farmland property and personal | 3 | | property used in the income-producing operations related to the | 4 | | farmland (for example, equipment and supplies, motor vehicles, | 5 | | or tools), necessary for self-support, up to $6,000 of the | 6 | | person's equity in the income-producing property, provided | 7 | | that the property produces a net annual income of at least 6% | 8 | | of the excluded equity value of the property, are exempt. | 9 | | Equity value in excess of $6,000 shall not be excluded. If the | 10 | | activity produces income that is less than 6% of the exempt | 11 | | equity due to reasons beyond the person's control (for example, | 12 | | the person's illness or crop failure) and there is a reasonable | 13 | | expectation that the property will again produce income equal | 14 | | to or greater than 6% of the equity value (for example, a | 15 | | medical prognosis that the person is expected to respond to | 16 | | treatment or that drought-resistant corn will be planted), the | 17 | | equity value in the property up to $6,000 is exempt. If the | 18 | | person owns more than one piece of property and each produces | 19 | | income, each piece of property shall be looked at to determine | 20 | | whether the 6% rule is met, and then the amounts of the | 21 | | person's equity in all of those properties shall be totaled to | 22 | | determine whether the total equity is $6,000 or less. The total | 23 | | equity value of all properties that is exempt shall be limited | 24 | | 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). | 9 | | Prepaid funeral or burial contracts are exempt to the | 10 | | following extent:
| 11 | | (1) Funds in a revocable prepaid funeral or burial | 12 | | contract are exempt up to $1,500, except that any portion | 13 | | of a contract that clearly represents the purchase of | 14 | | burial space, as that term is defined for purposes of the | 15 | | Supplemental Security Income program, is exempt regardless | 16 | | of value. | 17 | | (2) Funds in an irrevocable prepaid funeral or burial | 18 | | contract are exempt up to $5,874, except that any portion | 19 | | of a contract that clearly represents the purchase of | 20 | | burial space, as that term is defined for purposes of the | 21 | | Supplemental Security Income program, is exempt regardless | 22 | | of value. This amount shall be adjusted annually for any | 23 | | increase in the Consumer Price Index. The amount exempted | 24 | | shall be limited to the price of the funeral goods and | 25 | | services to be provided upon death. The contract must | 26 | | provide a complete description of the funeral goods and |
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| 1 | | services to be provided and the price thereof. Any amount | 2 | | in the contract not so specified shall be treated as a | 3 | | transfer of assets for less than fair market value. | 4 | | (3) A prepaid, guaranteed-price funeral or burial | 5 | | contract, funded by an irrevocable assignment of a person's | 6 | | life insurance policy to a trust, is exempt. The amount | 7 | | exempted shall be limited to the amount of the insurance | 8 | | benefit designated for the cost of the funeral goods and | 9 | | services to be provided upon the person's death. The | 10 | | contract must provide a complete description of the funeral | 11 | | goods and services to be provided and the price thereof. | 12 | | Any amount in the contract not so specified shall be | 13 | | treated as a transfer of assets for less than fair market | 14 | | value. The trust must include a statement that, upon the | 15 | | death of the person, the State will receive all amounts | 16 | | remaining in the trust, including any remaining payable | 17 | | proceeds under the insurance policy up to an amount equal | 18 | | to the total medical assistance paid on behalf of the | 19 | | person. The trust is responsible for ensuring that the | 20 | | provider of funeral services under the contract receives | 21 | | the proceeds of the policy when it provides the funeral | 22 | | goods and services specified under the contract. The | 23 | | irrevocable assignment of ownership of the insurance | 24 | | policy must be acknowledged by the insurance company. | 25 | | Notwithstanding any other provision of this Code to the | 26 | | contrary, an irrevocable trust containing the resources of a |
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| 1 | | person who is determined to have a disability shall be | 2 | | considered exempt from consideration. A pooled trust must be | 3 | | established and managed by a non-profit association that pools | 4 | | funds but maintains a separate account for each beneficiary. | 5 | | The trust may be established by the person, a parent, | 6 | | grandparent, legal guardian, or court. It must be established | 7 | | for the sole benefit of the person and language contained in | 8 | | the trust shall stipulate that any amount remaining in the | 9 | | trust (up to the amount expended by the Department on medical | 10 | | assistance) that is not retained by the trust for reasonable | 11 | | administrative costs related to wrapping up the affairs of the | 12 | | subaccount shall be paid to the Department upon the death of | 13 | | the person. After a person reaches age 65, any funding by or on | 14 | | behalf of the person to the trust shall be treated as a | 15 | | transfer of assets for less than fair market value unless the | 16 | | person is a ward of the court, of a county public guardian , or | 17 | | the State Guardian pursuant to Section 13-5 of the Probate Act | 18 | | of 1975 or Section 30 of the Guardianship and Advocacy Act and | 19 | | lives in the community, or the person is a ward of the court, | 20 | | of a county public guardian , or the State Guardian pursuant to | 21 | | Section 13-5 of the Probate Act of 1975 or Section 30 of the | 22 | | Guardianship and Advocacy Act and a court has found that any | 23 | | expenditures from the trust will maintain or enhance the | 24 | | person's quality of life. If the trust contains proceeds from a | 25 | | personal injury settlement, any Department charge must be | 26 | | satisfied in order for the transfer to the trust to be treated |
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| 1 | | as a transfer for fair market value. | 2 | | The homestead shall be exempt from consideration except to | 3 | | the extent
that it meets the income and shelter needs of the | 4 | | person. "Homestead"
means the dwelling house and contiguous | 5 | | real estate owned and occupied
by the person, regardless of its | 6 | | value. Subject to federal approval, a person shall not be | 7 | | eligible for long-term care services, however, if the person's | 8 | | equity interest in his or her homestead exceeds the minimum | 9 | | home equity as allowed and increased annually under federal | 10 | | law. Subject to federal approval, on and after the effective | 11 | | date of this amendatory Act of the 97th General Assembly, | 12 | | homestead property transferred to a trust shall no longer be | 13 | | considered homestead property.
| 14 | | Occasional or irregular gifts in cash, goods or services | 15 | | from persons
who are not legally responsible relatives which | 16 | | are of nominal value or
which do not have significant effect in | 17 | | meeting essential requirements
shall be disregarded. The | 18 | | eligibility of any applicant for or recipient
of public aid | 19 | | under this Article is not affected by the payment of any
grant | 20 | | under the "Senior Citizens and Disabled Persons Property Tax
| 21 | | Relief Act" or any distributions or items of
income described | 22 | | under subparagraph (X) of paragraph (2) of subsection (a) of
| 23 | | Section 203 of the Illinois Income Tax Act.
| 24 | | The Illinois Department may, after appropriate | 25 | | investigation, establish
and implement a consolidated standard | 26 | | to determine need and eligibility
for and amount of benefits |
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| 1 | | under this Article or a uniform cash supplement
to the federal | 2 | | Supplemental Security Income program for all or any part
of the | 3 | | then current recipients under this Article; provided, however, | 4 | | that
the establishment or implementation of such a standard or | 5 | | supplement shall
not result in reductions in benefits under | 6 | | this Article for the then current
recipients of such benefits.
| 7 | | (Source: P.A. 97-689, eff. 6-14-12; 98-104, eff. 7-22-13.)
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