Bill Text: IA SF527 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to trusts for persons with disabilities.(Formerly SSB 1228, SF 60.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-04-21 - Withdrawn. S.J. 910. [SF527 Detail]
Download: Iowa-2021-SF527-Introduced.html
Senate
File
527
-
Introduced
SENATE
FILE
527
BY
COMMITTEE
ON
HUMAN
RESOURCES
(SUCCESSOR
TO
SSB
1228)
A
BILL
FOR
An
Act
relating
to
trusts
for
persons
with
disabilities.
1
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
2
TLSB
1093SV
(2)
89
pf/rh
S.F.
527
Section
1.
Section
12I.1,
subsection
2,
paragraphs
b
and
g,
1
Code
2021,
are
amended
to
read
as
follows:
2
b.
“Account
owner”
means
an
individual
who
enters
into
is
3
the
designated
beneficiary
under
a
participation
agreement
4
under
this
chapter
for
the
payment
of
qualified
disability
5
expenses
on
behalf
of
a
the
designated
beneficiary.
6
g.
“Participation
agreement”
means
an
agreement
between
7
the
account
owner
and
establishing
an
account
with
the
trust
8
entered
into
under
this
chapter
.
9
Sec.
2.
Section
12I.2,
subsection
7,
Code
2021,
is
amended
10
to
read
as
follows:
11
7.
Enter
into
participation
agreements
with
account
owners
.
12
Sec.
3.
Section
12I.3,
unnumbered
paragraph
1,
Code
2021,
13
is
amended
to
read
as
follows:
14
On
or
after
July
1,
2016,
the
trust
may
enter
into
15
participation
agreements
with
account
owners
pursuant
to
the
16
following
terms
and
agreements:
17
Sec.
4.
Section
12I.3,
subsection
1,
paragraph
b,
Code
2021,
18
is
amended
to
read
as
follows:
19
b.
Unless
otherwise
permitted
under
section
529A
of
the
20
Internal
Revenue
Code,
the
account
owner
must
also
be
the
21
designated
beneficiary
of
the
account.
However,
a
trustee
or
22
legal
guardian
may
be
designated
as
custodian
of
an
account
for
23
a
designated
beneficiary
who
is
a
minor
or
who
lacks
capacity
24
to
enter
into
a
participation
agreement
if
such
designation
25
is
not
prohibited
under
section
529A
of
the
Internal
Revenue
26
Code
.
A
person
other
than
the
account
owner
may
enter
into
27
a
participation
agreement
and
have
signature
authority
over
28
the
account
on
behalf
of
the
account
owner
in
accordance
with
29
section
529A
of
the
Internal
Revenue
Code
and
regulations
30
promulgated
under
that
section.
31
EXPLANATION
32
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
33
the
explanation’s
substance
by
the
members
of
the
general
assembly.
34
This
bill
relates
to
trusts
for
persons
with
disabilities.
35
-1-
LSB
1093SV
(2)
89
pf/rh
1/
3
S.F.
527
The
bill
amends
provisions
under
Code
chapter
12I
1
(disabilities
expenses
savings
plan
trust),
also
known
as
the
2
Iowa
ABLE
savings
plan
trust,
relating
to
persons
eligible
3
to
enter
into
a
participation
agreement
and
have
signature
4
authority
over
an
account
on
behalf
of
an
eligible
individual.
5
The
Internal
Revenue
Code
final
regulations
for
qualified
6
ABLE
programs
published
November
19,
2020,
in
part,
broadened
7
the
categories
of
people
who
may
establish
an
ABLE
account
8
for
an
eligible
individual
to
provide
greater
flexibility
9
and
reduce
the
burden
on
the
eligible
individual.
The
10
final
regulations
permit
an
ABLE
account
to
be
established
11
by
the
eligible
individual,
a
person
selected
by
the
12
eligible
individual,
or
if
the
eligible
individual
is
13
unable
to
establish
the
individual’s
own
account,
by
the
14
individual’s
agent
under
a
power
of
attorney
or,
if
none,
by
15
a
conservator
or
legal
guardian,
spouse,
parent,
sibling,
16
grandparent,
or
a
representative
payee
appointed
by
the
17
Social
Security
Administration,
in
that
order.
Additionally,
18
the
final
regulations
allow
the
ABLE
program
to
rely
on
19
self-certification
of
the
individual
establishing
the
20
account
for
their
basis
of
authority
and
priority.
The
final
21
regulations
also
provide
for
signatory
authority
over
the
ABLE
22
account
by
the
designated
beneficiary,
an
individual
other
than
23
the
designated
beneficiary
who
establishes
the
account,
or
a
24
person
selected
by
the
beneficiary.
25
The
bill
provides
that
a
person
other
than
the
account
owner
26
may
enter
into
a
participation
agreement
and
have
signature
27
authority
over
the
account
on
behalf
of
the
account
owner
in
28
accordance
with
the
Internal
Revenue
Code
and
regulations
29
promulgated
under
federal
law.
30
The
disabilities
expenses
savings
plan
trust
is
also
known
31
as
the
Iowa
ABLE
savings
plan
trust
which
was
established
as
32
a
qualified
ABLE
program
under
section
529A
of
the
Internal
33
Revenue
Code.
The
purpose
of
ABLE
savings
accounts
is
to
34
encourage
and
assist
individuals
and
families
in
saving
35
-2-
LSB
1093SV
(2)
89
pf/rh
2/
3
S.F.
527
private
funds
for
the
purpose
of
supporting
individuals
with
1
disabilities
to
maintain
health,
independence,
and
quality
2
of
life
and
to
provide
secure
funding
for
disability-related
3
expenses
on
behalf
of
designated
beneficiaries
with
4
disabilities
that
will
supplement,
but
not
supplant,
benefits
5
provided
through
private
insurance,
the
Medicaid
program,
6
the
federal
supplemental
security
income
program,
and
other
7
sources.
ABLE
savings
accounts
allow
eligible
individuals
the
8
opportunity
to
save
and
fund
a
variety
of
qualified
disability
9
expenses
without
endangering
eligibility
for
certain
benefits
10
such
as
Medicaid
and
supplemental
security
income.
11
-3-
LSB
1093SV
(2)
89
pf/rh
3/
3
