SB 875
Allows $9,999 in an irrevocable trust for certain funeral expenses to not be considered an asset when determining eligibility for public assistance
LR Number:
Last Action:
4/25/2012 - Voted Do Pass S Judiciary and Civil and Criminal Jurisprudence Committee
Journal Page:
Calendar Position:
Effective Date:
August 28, 2012

Current Bill Summary

SB 875 - This act allows up to $9,999 to be set aside in an irrevocable personal funeral trust without that trust being considered an asset when determining eligibility for public assistance. The trust must be designated to pay for certain burial and funeral costs.

No person or entity may charge more than 10% of trust assets for creation of the trust and no more than 3% for maintenance of the trust. Trustees may commingle up to three personal funeral trust accounts so long as accurate records are kept. The standard of care for investments by the trustee is that of a prudent investor.

Excess money left in the account and not required for burial or funeral purposes shall be paid to the state up to the amount of public assistance provided. Any money remaining after paying the state is paid to those designated in the trust.

This act is similar to SB 365 (2011), SB 1025 (2010), and SB 1 (2009).