SB 405 - 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 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 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 SCS/HB 329 (2013), SB 875 (2012), SB 365 (2011), SB 1025 (2010), and SB 1 (2009).