Bill Amendment: IL HB0295 | 2021-2022 | 102nd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: PREPAID FUNERAL/BURIAL
Status: 2021-05-21 - Rule 3-9(a) / Re-referred to Assignments [HB0295 Detail]
Download: Illinois-2021-HB0295-House_Amendment_002.html
Bill Title: PREPAID FUNERAL/BURIAL
Status: 2021-05-21 - Rule 3-9(a) / Re-referred to Assignments [HB0295 Detail]
Download: Illinois-2021-HB0295-House_Amendment_002.html
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1 | AMENDMENT TO HOUSE BILL 295
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2 | AMENDMENT NO. ______. Amend House Bill 295, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Illinois Insurance Code is amended by | ||||||
6 | adding Section 245.3 as follows:
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7 | (215 ILCS 5/245.3 new) | ||||||
8 | Sec. 245.3. Irrevocable assignment of life insurance to a | ||||||
9 | funeral home. An insured or any other person who may be the | ||||||
10 | owner of rights under a policy of life insurance may make an | ||||||
11 | irrevocable assignment of all or a part of his or her rights | ||||||
12 | under the policy to a funeral home in accordance with Section | ||||||
13 | 2b of the Illinois Funeral or Burial Funds Act and have an | ||||||
14 | individual policy issued in accordance with paragraphs (G), | ||||||
15 | (H), and (K) of Section 231.1. Subject to the terms of the | ||||||
16 | policy or a contract relating to the policy, including, but |
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1 | not limited to, a prepaid funeral or burial contract, an | ||||||
2 | irrevocable assignment by an insured or other owner of rights | ||||||
3 | under a policy made before or after the effective date of this | ||||||
4 | amendatory Act of the 102nd General Assembly is valid for the | ||||||
5 | purpose of vesting in the assignee, in accordance with the | ||||||
6 | policy or contract as to the time at which it is effective, all | ||||||
7 | rights assigned. That irrevocable assignment is, however, | ||||||
8 | without prejudice to the company on account of any payment it | ||||||
9 | makes or individual policy it issues in accordance with | ||||||
10 | paragraphs (G), (H), and (K) of Section 231.1 before receipt | ||||||
11 | of notice of the assignment. The insurance company shall | ||||||
12 | within 15 business days notify the funeral home and owner of | ||||||
13 | the policy of its receipt of the form. A policy owner who | ||||||
14 | executes a designation of beneficiary form pursuant to Section | ||||||
15 | 2b of the Illinois Funeral or Burial Funds Act also | ||||||
16 | irrevocably waives and cannot exercise the following rights: | ||||||
17 | (1) The right to collect from the insurance company | ||||||
18 | the net proceeds of the policy when it becomes a claim by | ||||||
19 | death. | ||||||
20 | (2) The right to surrender the policy and receive the | ||||||
21 | cash surrender value of the policy. | ||||||
22 | (3) The right to obtain a policy loan. | ||||||
23 | (4) The right to designate as primary beneficiary of | ||||||
24 | the policy anyone other than as provided in that Act. | ||||||
25 | (5) The right to collect or receive income, | ||||||
26 | distributions, or shares of surplus, dividend deposits, |
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1 | refunds of premium, or additions to the policy. | ||||||
2 | This amendatory Act of the 102nd General Assembly | ||||||
3 | acknowledges, declares, and codifies the existing right of | ||||||
4 | assignment of interests under life insurance policies.
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5 | Section 10. The Illinois Funeral or Burial Funds Act is | ||||||
6 | amended by changing Sections 1a and 2a and by by adding Section | ||||||
7 | 2b as follows:
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8 | (225 ILCS 45/1a) (from Ch. 111 1/2, par. 73.101a)
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9 | Sec. 1a.
For the purposes of this Act, the following terms | ||||||
10 | shall have
the meanings specified, unless the context clearly | ||||||
11 | requires another meaning:
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12 | "Beneficiary" means the person specified in the pre-need | ||||||
13 | contract upon
whose death funeral services or merchandise | ||||||
14 | shall be provided or delivered.
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15 | "Burial spaces" has the meaning ascribed to that term in | ||||||
16 | 20 CFR 416.1231. | ||||||
17 | "Licensee" means a seller of a pre-need contract who has
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18 | been licensed by
the Comptroller under this Act.
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19 | "Outer burial container" means any container made of | ||||||
20 | concrete,
steel, wood, fiberglass or similar material, used | ||||||
21 | solely at the interment
site, and designed and used | ||||||
22 | exclusively to surround or enclose a separate
casket and to | ||||||
23 | support the earth above such casket, commonly known as a
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24 | burial vault, grave box or grave liner, but not including a |
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1 | lawn
crypt as defined in the Illinois Pre-need Cemetery Sales | ||||||
2 | Act.
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3 | "Parent company" means a corporation owning more than 12 | ||||||
4 | cemeteries or
funeral homes in more than one state.
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5 | "Person" means any person, partnership, association, | ||||||
6 | corporation, or
other entity.
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7 | "Pre-need contract" means any agreement or contract, or | ||||||
8 | any series or
combination of agreements or contracts, whether | ||||||
9 | funded by trust deposits or
life insurance policies or | ||||||
10 | annuities, which has for a purpose the furnishing
or | ||||||
11 | performance of funeral services or the furnishing or delivery | ||||||
12 | of any
personal property, merchandise, or services of any | ||||||
13 | nature in connection with
the final disposition of a dead | ||||||
14 | human body. Nothing in this Act is intended to
regulate the | ||||||
15 | content of a life insurance policy or a tax-deferred annuity.
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16 | "Provider" means a person who is obligated for furnishing | ||||||
17 | or performing
funeral services or the furnishing or delivery | ||||||
18 | of any personal property,
merchandise, or services of any | ||||||
19 | nature in connection with the final disposition
of a dead | ||||||
20 | human body.
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21 | "Purchaser" means the person who originally paid the money | ||||||
22 | under or in
connection with a pre-need contract.
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23 | "Sales proceeds" means the entire amount paid to a seller, | ||||||
24 | exclusive
of sales taxes paid by the seller, finance charges | ||||||
25 | paid by the purchaser, and
credit life, accident or disability | ||||||
26 | insurance premiums, upon any agreement or
contract, or series |
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1 | or combination of agreements or contracts, for the purpose
of | ||||||
2 | performing funeral services or furnishing personal property, | ||||||
3 | merchandise, or
services of any nature in connection with the | ||||||
4 | final disposition of a dead human
body, including, but not | ||||||
5 | limited to, the retail price paid for such services
and | ||||||
6 | personal property and merchandise.
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7 | "Purchase price" means sales proceeds less finance charges | ||||||
8 | on
retail
installment contracts.
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9 | "Seller" means the person who sells or
offers to sell the | ||||||
10 | pre-need contract
to a purchaser, whether funded by a trust | ||||||
11 | agreement, life insurance policy,
or tax-deferred annuity.
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12 | "Trustee" means a person authorized to hold funds under | ||||||
13 | this Act.
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14 | (Source: P.A. 92-419, eff. 1-1-02.)
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15 | (225 ILCS 45/2a)
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16 | Sec. 2a. Purchase of insurance or annuity.
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17 | (a) If a purchaser selects the purchase of a life | ||||||
18 | insurance policy or
tax-deferred annuity contract to fund the | ||||||
19 | pre-need contract, the application
and collected premium shall | ||||||
20 | be mailed within 30 days of signing the pre-need
contract.
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21 | (b) If life insurance or an annuity is used to fund a
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22 | pre-need contract,
the seller or provider shall not be named | ||||||
23 | as the owner or beneficiary of the
policy or annuity. No person | ||||||
24 | whose only insurable interest in the insured is
the receipt of | ||||||
25 | proceeds from the policy or in naming who shall receive the
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1 | proceeds nor any trust acting on behalf of such person or | ||||||
2 | seller or provider
shall be named as owner or beneficiary of | ||||||
3 | the policy or annuity.
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4 | (c) Nothing shall prohibit the purchaser from irrevocably | ||||||
5 | assigning
ownership of the policy or annuity used to fund a | ||||||
6 | guaranteed price pre-need
contract to a person or trust or | ||||||
7 | from irrevocably assigning the benefits of the policy or | ||||||
8 | annuity to a funeral home for the purpose of obtaining | ||||||
9 | favorable
consideration for Medicaid, Supplemental Security | ||||||
10 | Income, or another public
assistance program, as permitted | ||||||
11 | under federal law. The seller or contract
provider may be | ||||||
12 | named a
nominal owner of the life insurance policy only for | ||||||
13 | such
time as it takes to immediately transfer the policy into a
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14 | trust. Except for this purpose, neither the
seller nor the | ||||||
15 | contract provider shall be named the owner
or the beneficiary | ||||||
16 | of the policy or annuity.
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17 | (d) If a life insurance policy or annuity contract is used | ||||||
18 | to fund a
pre-need contract, except for guaranteed price | ||||||
19 | contracts permitted in Section
4(a) of this Act, the pre-need | ||||||
20 | contract must be revocable, and any
assignment
provision in | ||||||
21 | the pre-need contract must contain the following disclosure in | ||||||
22 | 12
point bold type:
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23 | THIS ASSIGNMENT MAY BE REVOKED BY THE ASSIGNOR OR | ||||||
24 | ASSIGNOR'S SUCCESSOR OR, IF
THE ASSIGNOR IS ALSO THE INSURED | ||||||
25 | AND DECEASED, BY THE REPRESENTATIVE OF THE
INSURED'S ESTATE | ||||||
26 | BEFORE THE RENDERING TO THE CEMETERY SERVICES OR GOODS OR
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1 | FUNERAL SERVICES OR GOODS. IF THE ASSIGNMENT IS REVOKED, THE | ||||||
2 | DEATH BENEFIT
UNDER THE LIFE INSURANCE POLICY OR ANNUITY | ||||||
3 | CONTRACT SHALL BE PAID IN ACCORDANCE
WITH THE BENEFICIARY | ||||||
4 | DESIGNATION UNDER THE INSURANCE POLICY OR ANNUITY
CONTRACT.
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5 | (e) Sales proceeds shall not be used to purchase life | ||||||
6 | insurance policies
or tax-deferred annuities unless the | ||||||
7 | company issuing the life insurance
policies or tax-deferred | ||||||
8 | annuities is licensed with the Illinois Department of
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9 | Insurance, and the insurance producer or annuity seller is | ||||||
10 | licensed to do
business in the State of Illinois.
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11 | (Source: P.A. 92-419, eff. 1-1-02.)
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12 | (225 ILCS 45/2b new) | ||||||
13 | Sec. 2b. Irrevocable designation of beneficiary of | ||||||
14 | existing whole life insurance. | ||||||
15 | (a) In accordance with Section 245.3 of the Illinois | ||||||
16 | Insurance Code, an insured or any other person who may be the | ||||||
17 | owner of rights under an existing policy of whole life | ||||||
18 | insurance may make an irrevocable assignment of all or a part | ||||||
19 | of his or her rights under the policy to a provider in | ||||||
20 | consideration for signing a guaranteed pre-need contract for | ||||||
21 | the purpose of obtaining favorable consideration for Medicaid, | ||||||
22 | Supplemental Security Income, or another public assistance | ||||||
23 | program. The form prepared by the Department of Healthcare and | ||||||
24 | Family Services under paragraph (4) of subsection (c) of | ||||||
25 | Section 3-1.2 of the Illinois Public Aid Code or by the |
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1 | insurance company shall provide for an irrevocable designation | ||||||
2 | of beneficiary of one or more life insurance policies. The | ||||||
3 | insured or any other person who may be the owner of rights | ||||||
4 | under an existing policy of whole life insurance shall sign a | ||||||
5 | guaranteed pre-need contract with the provider that describes | ||||||
6 | the cost of the funeral goods and services to be provided upon | ||||||
7 | the person's death, up to $6,774, in addition to the purchase | ||||||
8 | of burial spaces. This amount shall be adjusted annually by | ||||||
9 | the Department of Human Services for any increase in the | ||||||
10 | Consumer Price Index. The guaranteed pre-need contract must | ||||||
11 | provide a complete description and cost of the funeral goods | ||||||
12 | and services including burial spaces. More than one policy may | ||||||
13 | be subject to this Section if the total face value of the | ||||||
14 | policies is necessary to pay the amount described in the | ||||||
15 | guaranteed pre-need contract with the provider. All policies | ||||||
16 | shall be listed on the form. The insured or any other person | ||||||
17 | who may be the owner of rights under an existing policy of | ||||||
18 | whole life insurance shall be given a copy of the executed | ||||||
19 | form. The licensee shall retain copies for inspection by the | ||||||
20 | Comptroller and shall report annually to the Comptroller the | ||||||
21 | following: the name of the insured, the insurance policy | ||||||
22 | number, the amount of the guaranteed pre-need contract, the | ||||||
23 | current value of the policy or benefits designated, and the | ||||||
24 | name of the insurance company issuing the policy. | ||||||
25 | (b) The insured or any other person who may be the owner of | ||||||
26 | rights under an existing policy of whole life insurance shall |
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1 | acknowledge that by making this assignment irrevocable, the | ||||||
2 | policy cannot be cancelled, although it does not affect the | ||||||
3 | right of the policy owner to cancel the insurance policy | ||||||
4 | within the examination period provided under the policy. | ||||||
5 | (c) Upon the death of the insured, the proceeds of the life | ||||||
6 | insurance policies subject to this Section shall be paid to | ||||||
7 | the provider, who shall apply such proceeds in the following | ||||||
8 | order or priority: | ||||||
9 | (1) first, to the provider in an amount equal to the | ||||||
10 | lesser of: | ||||||
11 | (A) the amount of the guaranteed pre-need | ||||||
12 | contract; or | ||||||
13 | (B) the actual value of the funeral and burial or | ||||||
14 | cemetery services and merchandise provided; | ||||||
15 | (2) second, to the State of Illinois, up to an amount | ||||||
16 | equal to the total medical assistance paid on behalf of | ||||||
17 | the insured; and | ||||||
18 | (3) third, payment of proceeds to a secondary | ||||||
19 | beneficiary (if any) listed on the policy, or to the | ||||||
20 | estate of the decedent if no secondary beneficiary is | ||||||
21 | named on the policy in the event the proceeds exceed the | ||||||
22 | lesser of the prearranged costs or actual value of the | ||||||
23 | funeral and burial or cemetery merchandise and services | ||||||
24 | provided and the total medical assistance paid on behalf | ||||||
25 | of the insured. | ||||||
26 | (d) The provider shall receive and disburse these proceeds |
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1 | notwithstanding any other prohibition in law against serving | ||||||
2 | as a trustee. | ||||||
3 | (e) Further assignment. The rights and obligations of the | ||||||
4 | provider subject to the irrevocable designation of beneficiary | ||||||
5 | may be assigned to another provider upon the choice of the | ||||||
6 | insured or the approved representative or the power of | ||||||
7 | attorney for property of the insured, or upon the insolvency | ||||||
8 | or bankruptcy of the provider. The assignee provider shall: | ||||||
9 | (i) be bound to the terms of the irrevocable designation of | ||||||
10 | beneficiary; (ii) notify the insurance company or companies of | ||||||
11 | the assignment; (iii) notify the Department of Healthcare and | ||||||
12 | Family Services of the change in provider; and (iv) retain a | ||||||
13 | copy of the assignment for inspection by the Comptroller.
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14 | Section 15. The Illinois Public Aid Code is amended by | ||||||
15 | changing Section 3-1.2 as follows:
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16 | (305 ILCS 5/3-1.2) (from Ch. 23, par. 3-1.2)
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17 | Sec. 3-1.2. Need. | ||||||
18 | (a) Income available to the person, when added to
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19 | contributions in money, substance, or services from other | ||||||
20 | sources,
including contributions from legally responsible | ||||||
21 | relatives, must be
insufficient to equal the grant amount | ||||||
22 | established by Department regulation
for such person. In | ||||||
23 | determining earned income to be taken into account, | ||||||
24 | consideration
shall be given to any expenses reasonably |
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1 | attributable to the earning of
such income. If federal law or | ||||||
2 | regulations permit or require exemption
of earned or other | ||||||
3 | income and resources, the Illinois Department shall
provide by | ||||||
4 | rule and regulation that the amount of income to be
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5 | disregarded be increased (1) to the maximum extent so required | ||||||
6 | and (2)
to the maximum extent permitted by federal law or | ||||||
7 | regulation in effect
as of the date this amendatory Act | ||||||
8 | becomes law. The Illinois Department
may also provide by rule | ||||||
9 | and regulation that the amount of resources to
be disregarded | ||||||
10 | be increased to the maximum extent so permitted or required. | ||||||
11 | (b) Subject to federal approval, resources (for example, | ||||||
12 | land, buildings, equipment, supplies, or tools), including | ||||||
13 | farmland property and personal property used in the | ||||||
14 | income-producing operations related to the farmland (for | ||||||
15 | example, equipment and supplies, motor vehicles, or tools), | ||||||
16 | necessary for self-support, up to $6,000 of the person's | ||||||
17 | equity in the income-producing property, provided that the | ||||||
18 | property produces a net annual income of at least 6% of the | ||||||
19 | excluded equity value of the property, are exempt. Equity | ||||||
20 | value in excess of $6,000 shall not be excluded. If the | ||||||
21 | activity produces income that is less than 6% of the exempt | ||||||
22 | equity due to reasons beyond the person's control (for | ||||||
23 | example, the person's illness or crop failure) and there is a | ||||||
24 | reasonable expectation that the property will again produce | ||||||
25 | income equal to or greater than 6% of the equity value (for | ||||||
26 | example, a medical prognosis that the person is expected to |
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1 | respond to treatment or that drought-resistant corn will be | ||||||
2 | planted), the equity value in the property up to $6,000 is | ||||||
3 | exempt. If the person owns more than one piece of property and | ||||||
4 | each produces income, each piece of property shall be looked | ||||||
5 | at to determine whether the 6% rule is met, and then the | ||||||
6 | amounts of the person's equity in all of those properties | ||||||
7 | shall be totaled to determine whether the total equity is | ||||||
8 | $6,000 or less. The total equity value of all properties that | ||||||
9 | is exempt shall be limited to $6,000.
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10 | (c) In determining the resources of an individual or any | ||||||
11 | dependents, the
Department shall exclude from consideration | ||||||
12 | the value of funeral and burial
spaces, funeral and
burial | ||||||
13 | insurance the proceeds of which can only be used to pay the | ||||||
14 | funeral
and burial expenses of the insured and funds | ||||||
15 | specifically set aside for the
funeral and burial arrangements | ||||||
16 | of the individual or his or her dependents,
including prepaid | ||||||
17 | funeral and burial plans, to the same extent that such
items | ||||||
18 | are excluded from consideration under the federal Supplemental
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19 | Security Income program (SSI). At any time after submitting an | ||||||
20 | application for medical assistance and before a final | ||||||
21 | determination of eligibility has been made by the Department, | ||||||
22 | an applicant may use available resources to purchase one of | ||||||
23 | the prepaid funeral or burial contracts exempted under this | ||||||
24 | Section. | ||||||
25 | Prepaid funeral or burial contracts are exempt to the | ||||||
26 | following extent:
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1 | (1) Funds in a revocable prepaid funeral or burial | ||||||
2 | contract are exempt up to $1,500, except that any portion | ||||||
3 | of a contract that clearly represents the purchase of | ||||||
4 | burial space, as that term is defined for purposes of the | ||||||
5 | Supplemental Security Income program, is exempt regardless | ||||||
6 | of value. | ||||||
7 | (2) Funds in an irrevocable prepaid funeral or burial | ||||||
8 | contract are exempt up to $6,774 $5,874 , except that any | ||||||
9 | portion of a contract that clearly represents the purchase | ||||||
10 | of burial space, as that term is defined for purposes of | ||||||
11 | the Supplemental Security Income program, is exempt | ||||||
12 | regardless of value. This amount shall be adjusted | ||||||
13 | annually for any increase in the Consumer Price Index. The | ||||||
14 | amount exempted shall be limited to the price of the | ||||||
15 | funeral goods and services to be provided upon death. The | ||||||
16 | contract must provide a complete description of the | ||||||
17 | funeral goods and services to be provided and the price | ||||||
18 | thereof. Any amount in the contract not so specified shall | ||||||
19 | be treated as a transfer of assets for less than fair | ||||||
20 | market value. | ||||||
21 | (3) A prepaid, guaranteed-price funeral or burial | ||||||
22 | contract, funded by an irrevocable assignment of a | ||||||
23 | person's life insurance policy to a trust or a funeral | ||||||
24 | home , is exempt. The amount exempted shall be limited to | ||||||
25 | the amount of the insurance benefit designated for the | ||||||
26 | cost of the funeral goods and services to be provided upon |
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1 | the person's death. The contract must provide a complete | ||||||
2 | description of the funeral goods and services to be | ||||||
3 | provided and the price thereof. Any amount in the contract | ||||||
4 | not so specified shall be treated as a transfer of assets | ||||||
5 | for less than fair market value. The trust must include a | ||||||
6 | statement that, upon the death of the person, the State | ||||||
7 | will receive all amounts remaining in the trust, including | ||||||
8 | any remaining payable proceeds under the insurance policy | ||||||
9 | up to an amount equal to the total medical assistance paid | ||||||
10 | on behalf of the person. The trust is responsible for | ||||||
11 | ensuring that the provider of funeral services under the | ||||||
12 | contract receives the proceeds of the policy when it | ||||||
13 | provides the funeral goods and services specified under | ||||||
14 | the contract. The irrevocable assignment of ownership of | ||||||
15 | the insurance policy must be acknowledged by the insurance | ||||||
16 | company. | ||||||
17 | (4) Existing life insurance policies are exempt if | ||||||
18 | there has been an irrevocable declaration of proceeds at | ||||||
19 | the death of the insured in compliance with this | ||||||
20 | subsection. A person shall sign a contract with a funeral | ||||||
21 | home that describes the cost of the funeral goods and | ||||||
22 | services to be provided upon the person's death, up to | ||||||
23 | $6,774, in addition to the purchase of burial spaces. This | ||||||
24 | amount shall be adjusted annually for any increase in the | ||||||
25 | Consumer Price Index. The contract must provide a complete | ||||||
26 | description of the funeral goods and services and burial |
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1 | spaces to be provided and the price thereof. The person | ||||||
2 | shall sign an irrevocable designation of beneficiary form | ||||||
3 | declaring that any amounts payable from the policies not | ||||||
4 | used for funeral goods and services or burial spaces as | ||||||
5 | set forth in the contract shall be received by the State, | ||||||
6 | up to an amount equal to the total medical assistance paid | ||||||
7 | on behalf of the person; any funds remaining after payment | ||||||
8 | to the State shall be paid to a secondary beneficiary (if | ||||||
9 | any) listed on the policy, or to the estate of the | ||||||
10 | purchaser if no secondary beneficiary is named on the | ||||||
11 | policy in the event the proceeds exceed the prearranged | ||||||
12 | costs of the funeral home or cemetery merchandise and | ||||||
13 | services and the total medical assistance paid on behalf | ||||||
14 | of the insured. More than one policy may be subject to this | ||||||
15 | subsection if the total face value of the policies is | ||||||
16 | necessary to pay the amount described in the contract with | ||||||
17 | the funeral home; policies that are not necessary to pay | ||||||
18 | the amount described in the contract are not exempt. The | ||||||
19 | Department of Healthcare and Family Services shall adopt | ||||||
20 | rules and forms to implement this Section. | ||||||
21 | (d) Notwithstanding any other provision of this Code to | ||||||
22 | the contrary, an irrevocable trust containing the resources of | ||||||
23 | a person who is determined to have a disability shall be | ||||||
24 | considered exempt from consideration. A pooled trust must be | ||||||
25 | established and managed by a non-profit association that pools | ||||||
26 | funds but maintains a separate account for each beneficiary. |
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1 | The trust may be established by the person, a parent, | ||||||
2 | grandparent, legal guardian, or court. It must be established | ||||||
3 | for the sole benefit of the person and language contained in | ||||||
4 | the trust shall stipulate that any amount remaining in the | ||||||
5 | trust (up to the amount expended by the Department on medical | ||||||
6 | assistance) that is not retained by the trust for reasonable | ||||||
7 | administrative costs related to wrapping up the affairs of the | ||||||
8 | subaccount shall be paid to the Department upon the death of | ||||||
9 | the person. After a person reaches age 65, any funding by or on | ||||||
10 | behalf of the person to the trust shall be treated as a | ||||||
11 | transfer of assets for less than fair market value unless the | ||||||
12 | person is a ward of a county public guardian or the State | ||||||
13 | Guardian pursuant to Section 13-5 of the Probate Act of 1975 or | ||||||
14 | Section 30 of the Guardianship and Advocacy Act and lives in | ||||||
15 | the community, or the person is a ward of a county public | ||||||
16 | guardian or the State Guardian pursuant to Section 13-5 of the | ||||||
17 | Probate Act of 1975 or Section 30 of the Guardianship and | ||||||
18 | Advocacy Act and a court has found that any expenditures from | ||||||
19 | the trust will maintain or enhance the person's quality of | ||||||
20 | life. If the trust contains proceeds from a personal injury | ||||||
21 | settlement, any Department charge must be satisfied in order | ||||||
22 | for the transfer to the trust to be treated as a transfer for | ||||||
23 | fair market value. | ||||||
24 | (e) The homestead shall be exempt from consideration | ||||||
25 | except to the extent
that it meets the income and shelter needs | ||||||
26 | of the person. "Homestead"
means the dwelling house and |
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1 | contiguous real estate owned and occupied
by the person, | ||||||
2 | regardless of its value. Subject to federal approval, a person | ||||||
3 | shall not be eligible for long-term care services, however, if | ||||||
4 | the person's equity interest in his or her homestead exceeds | ||||||
5 | the minimum home equity as allowed and increased annually | ||||||
6 | under federal law. Subject to federal approval, on and after | ||||||
7 | the effective date of this amendatory Act of the 97th General | ||||||
8 | Assembly, homestead property transferred to a trust shall no | ||||||
9 | longer be considered homestead property.
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10 | (f) Occasional or irregular gifts in cash, goods or | ||||||
11 | services from persons
who are not legally responsible | ||||||
12 | relatives which are of nominal value or
which do not have | ||||||
13 | significant effect in meeting essential requirements
shall be | ||||||
14 | disregarded. | ||||||
15 | (g) The eligibility of any applicant for or recipient
of | ||||||
16 | public aid under this Article is not affected by the payment of | ||||||
17 | any
grant under the "Senior Citizens and Disabled Persons | ||||||
18 | Property Tax
Relief Act" or any distributions or items of
| ||||||
19 | income described under subparagraph (X) of paragraph (2) of | ||||||
20 | subsection (a) of
Section 203 of the Illinois Income Tax Act.
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21 | (h) The Illinois Department may, after appropriate | ||||||
22 | investigation, establish
and implement a consolidated standard | ||||||
23 | to determine need and eligibility
for and amount of benefits | ||||||
24 | under this Article or a uniform cash supplement
to the federal | ||||||
25 | Supplemental Security Income program for all or any part
of | ||||||
26 | the then current recipients under this Article; provided, |
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1 | however, that
the establishment or implementation of such a | ||||||
2 | standard or supplement shall
not result in reductions in | ||||||
3 | benefits under this Article for the then current
recipients of | ||||||
4 | such benefits.
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5 | (Source: P.A. 97-689, eff. 6-14-12; 98-104, eff. 7-22-13.)".
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