Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 49 (2018GS)

Sponsor

Sen. Hillyard, L.

Final action

Governor Signed 3/15/2018

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• expands who may establish a discretionary trust for an individual with a disability; and
• makes technical changes.

Every vote on this bill

Bill text

SPECIAL NEEDS TRUST AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lyle W. Hillyard
House Sponsor: 
Edward H. Redd
LONG TITLE
General Description:
This bill amends provisions related to the creation of a trust for an individual with a
disability.
Highlighted Provisions:
This bill:
▸ expands who may establish a discretionary trust for an individual with a disability;
and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
62A-5-110
, as last amended by Laws of Utah 2011, Chapter 366
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
62A-5-110
 is amended to read:
62A-5-110.
Discretionary trust for an individual with a disability -- Impact on
state services.
(1) For purposes of this section:
(a) "Discretionary trust for [
a person with disabilities
] 
an individual with a disability
"
means a trust:
(i) that is established for the benefit of an individual who, at the time the trust is
created, is under age 65 and has a disability
,
 as defined in 42 U.S.C. Sec. 1382c;
(ii) under which the trustee has discretionary power to determine distributions;
(iii) under which the [
beneficiary
] 
individual
 may not control or demand payments
unless an abuse of the trustee's duties or discretion is shown;
[
(iv) that contains the assets of the beneficiary and is established for the benefit of the
beneficiary by a parent, grandparent, legal guardian, or court;
]
(iv) that contains the assets of the individual and is established for the benefit of the
individual by the individual, a court, or a parent, grandparent, or legal guardian of the
individual;
(v) that is irrevocable, except that the trust document may provide that the trust be
terminated if the [
beneficiary
] 
individual
 no longer has a disability
,
 as defined in 42 U.S.C.
Sec. 1382c;
(vi) that is invalid as to any portion funded by property that is or may be subject to a
lien by the state; and
(vii) [
providing
] 
that provides
 that, upon the death of the [
beneficiary
] 
individual
, the
state will receive all amounts remaining in the trust, up to an amount equal to the total medical
assistance paid on behalf of the [
beneficiary
] 
individual
.
(b) "Medical assistance" means the same as that term is defined in Section 
26-18-2
.
(2) A state agency providing services or support to [
a person with disabilities
] 
an
individual with a disability
 may:
(a) waive application of Subsection (1)(a)(v) with respect to that individual if [
it
] 
the
state agency
 determines that application of the criteria would place an undue hardship upon that
individual; and
(b) define, by rule, what constitutes "undue hardship" for purposes of this section.
(3) A discretionary trust for [
a person with disabilities
] 
an individual with a disability
is not liable for reimbursement or payment to the state or any state agency, for financial aid or
services provided to that individual except:
(a) to the extent that the trust property has been distributed directly to or is otherwise
under the control of the beneficiary with a disability; or
(b) as provided in Subsection (1)(a)(vi).
(4) Property, goods, and services that are purchased or owned by a discretionary trust
for [
a person with disabilities
] 
an individual with a disability
 and that are used or consumed by
a beneficiary with a disability shall not be considered trust property that is distributed to or
under the control of the beneficiary.
(5) The benefits that [
a person with disabilities
] 
an individual with a disability
 is
otherwise legally entitled to may not be reduced, impaired, or diminished in any way because
of contribution to a discretionary trust for that [
person
] 
individual
.
(6) All state agencies shall disregard a discretionary trust for [
a person with disabilities,
as defined in Subsection (1),
] 
an individual with a disability
 as a resource when determining
eligibility for services or support except as, and only to the extent that it is otherwise prohibited
by federal law.
(7) This section applies to all discretionary trusts that meet the requirements contained
in Subsection (1) created before, on, or after July 1, 1994.