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1 | AN ACT concerning public aid.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Public Aid Code is amended by | ||||||||||||||||||||||||
5 | changing Section 3-1.2 as follows:
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6 | (305 ILCS 5/3-1.2) (from Ch. 23, par. 3-1.2)
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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.
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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.
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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
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8 | Security Income program (SSI). | ||||||
9 | Prepaid funeral or burial contracts are exempt to the | ||||||
10 | following extent:
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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.
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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
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21 | Relief Act" or any distributions or items of
income described | ||||||
22 | under subparagraph (X) of paragraph (2) of subsection (a) of
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23 | Section 203 of the Illinois Income Tax Act.
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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.
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7 | (Source: P.A. 97-689, eff. 6-14-12; 98-104, eff. 7-22-13.)
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