634A.2 Supplemental needs trust — requirements. 1. A supplemental needs trust established in compliance with this chapter is in keeping with the public policy of this state and is enforceable. 2. A supplemental needs trust established under this chapter shall comply with all of the following: a. Shall be established as a discretionary trust for the purpose of providing a supplemental source for payment of expenses which include but are not limited to the reasonable livingexpenses and basic needs of a person with a disability only if benefits from publicly fundedbenefit programs are not sufficient to provide adequately for those expenses and needs. b. Shall contain provisions which prohibit disbursements that would result in replacement, reduction, or substitution for publicly funded benefits otherwise available tothe beneficiary or in rendering the beneficiary ineligible for publicly funded benefits. Thesupplemental needs trust shall provide for distributions only in a manner and for purposesthat supplement or complement the benefits available under medical assistance, statesupplementary assistance, and other publicly funded benefit programs for persons withdisabilities. 3. d for purposesthat supplement or complement the benefits available under medical assistance, statesupplementary assistance, and other publicly funded benefit programs for persons withdisabilities. 3. For the purpose of establishing eligibility of a person as a beneficiary of a supplemental needs trust, disability may be established conclusively by the written opinion of a licensedprofessional who is qualified to diagnose the illness or condition, if confirmed by the writtenopinion of a second licensed professional who is also qualified to diagnose the illness orcondition. 4. A supplemental needs trust is not enforceable if the trust beneficiary becomes a patient or resident after sixty-four years of age in a state institution or nursing facility for six monthsor more and, due to the beneficiary’s medical need for care in an institutional setting, thereis no reasonable expectation, as certified by the beneficiary’s attending physician, thatthe beneficiary will be discharged from the facility. For the purposes of this subsection, abeneficiary participating in a group residential program is not a patient or resident of a stateinstitution or nursing facility. 5. discharged from the facility. For the purposes of this subsection, abeneficiary participating in a group residential program is not a patient or resident of a stateinstitution or nursing facility. 5. The trust income and assets of a supplemental needs trust are considered available to the beneficiary for medical assistance or other public assistance program purposes to theextent that income and assets are considered available in accordance with the methodologyapplicable to a particular program. 6. A supplemental needs trust is not subject to administration in the Iowa district court sitting in probate. A trustee of a supplemental needs trust has all powers and shall be subjectto all the duties and liabilities of a trustee as provided in the probate code, except the duty ofreporting to or obtaining approval of the court. 7. Notwithstanding the prohibition of the funding of a supplemental needs trust by the beneficiary or the beneficiary’s spouse, a supplemental needs trust may be established withthe proceeds of back payments made by the United States social security administrationresulting from a judgment regarding the regulatory schemes for determination of thedisability of a stablished withthe proceeds of back payments made by the United States social security administrationresulting from a judgment regarding the regulatory schemes for determination of thedisability of a child. 8. Any funds retained in a supplemental needs trust of a beneficiary who is also a designated beneficiary as defined in section 12I.1 may be transferred to the Iowa ABLEsavings plan trust account of the designated beneficiary in accordance with this chapter andchapter 12I. 97 Acts, ch 112, §2; 2021 Acts, ch 136, §9For medical assistance trusts, see chapter 633C Sat Dec 23 12:18:00 2023 Iowa Code 2024, Section 634A.2 (16, 0)
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