S T A T E O F N E W Y O R K
________________________________________________________________________
S. 3377--A A. 6926--A
2009-2010 Regular Sessions
S E N A T E - A S S E M B L Y
March 17, 2009
___________
IN SENATE -- Introduced by Sens. KLEIN, BRESLIN, HASSELL-THOMPSON,
C. JOHNSON, SAVINO, THOMPSON -- read twice and ordered printed, and
when printed to be committed to the Committee on Consumer Protection
-- recommitted to the Committee on Consumer Protection in accordance
with Senate Rule 6, sec. 8 -- reported favorably from said committee
and committed to the Committee on Finance -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
IN ASSEMBLY -- Introduced by M. of A. PHEFFER -- read once and referred
to the Committee on Judiciary -- recommitted to the Committee on Judi-
ciary in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the general business law and the social services law, in
relation to irrevocable trust accounts for funeral and burial expenses
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (d) of subdivision 1 of section 453 of the gener-
al business law, as amended by chapter 557 of the laws of 2001, is
amended to read as follows:
(d) Moneys paid for such an agreement for an applicant or recipient of
supplemental security income benefits under section two hundred nine of
the social services law or of medical assistance under section three
hundred sixty-six of such law, OR, TO THE EXTENT TREATED AS AN EXEMPT
ASSET UNDER FEDERAL GUIDELINES, FOR A FAMILY MEMBER OF ANY SUCH AGREE-
MENT ESTABLISHED OR FUNDED BY SUCH AN APPLICANT OR RECIPIENT, shall be
placed into a trust which shall be irrevocable but under which such
[applicant/recipient] APPLICANT/RECIPIENT/PURCHASER reserves the right
to select any funeral firm, funeral director, undertaker, cemetery or
any other person, firm or corporation to whom such payment is made and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10331-02-0
S. 3377--A 2 A. 6926--A
to change such selection any time to any type of funeral or any funeral
firm, funeral director, cemetery or any other person, firm or corpo-
ration to whom such payment is made, located in the state of New York or
any other state. Any such change must be carried out within ten business
days following receipt of a request by the purchaser to the funeral
firm, funeral director, cemetery or any other person, firm or corpo-
ration to whom such payment is made, with which such trust was estab-
lished. This requirement is subject to any limits set forth in federal
law or regulation pertaining to disregarded resources or income.
S 2. Paragraph (f) of subdivision 3 of section 453 of the general
business law, as added by chapter 660 of the laws of 1996, is amended to
read as follows:
(f) With respect to an agreement for an irrevocable trust fund pursu-
ant to section two hundred nine of the social services law OR PARAGRAPH
(D) OF SUBDIVISION ONE OF THIS SECTION, include the following statement
in the agreement in conspicuous print of at least twelve point type:
DISCLOSURE
NEW YORK LAW REQUIRES THIS AGREEMENT TO BE IRREVOCABLE FOR APPLICANTS
FOR RECEIPT OF SUPPLEMENTAL SECURITY BENEFITS UNDER SECTION TWO HUNDRED
NINE OF THE SOCIAL SERVICES LAW OR OF MEDICAL ASSISTANCE UNDER SECTION
THREE HUNDRED SIXTY-SIX OF THE SOCIAL SERVICES LAW OR FOR ACCOUNTS
ESTABLISHED FOR FAMILY MEMBERS UNDER PARAGRAPH (D) OF SUBDIVISION ONE OF
SECTION FOUR HUNDRED FIFTY-THREE OF THE GENERAL BUSINESS LAW, AND FOR
THE MONEYS PUT INTO A TRUST UNDER THIS AGREEMENT TO BE USED ONLY FOR
FUNERAL AND BURIAL EXPENSES. IF ANY MONEY IS LEFT OVER AFTER [YOUR] THE
FUNERAL AND BURIAL EXPENSES HAVE BEEN PAID, IT WILL GO TO THE COUNTY.
[YOU] THE APPLICANT MAY CHANGE [YOUR] THEIR CHOICE OF FUNERAL HOME AT
ANY TIME, WHILE EACH FAMILY MEMBER MAY DO SO ONLY UPON THE DEATH OF THE
APPLICANT.
S 3. Subdivision 6 of section 209 of the social services law, as
amended by chapter 660 of the laws of 1996, paragraphs (a) and (b) as
amended by chapter 317 of the laws of 2002, is amended to read as
follows:
6. (a) As applicable federal law, rules and regulations so provide, a
recipient of supplemental security income benefits or medical assistance
in the state of New York or any other state, OR THE FAMILY MEMBER OR
MEMBERS OF AN ACCOUNT ESTABLISHED PURSUANT TO PARAGRAPH (D) OF SUBDIVI-
SION ONE OF SECTION FOUR HUNDRED FIFTY-THREE OF THE GENERAL BUSINESS
LAW, may establish an irrevocable trust fund for the exclusive purpose
of their funeral and burial. Such trust fund and any accumulated inter-
est not withdrawn by the recipient shall remain the responsibility of
the funeral firm, funeral director, undertaker, cemetery or any other
person, firm or corporation to whom such payment is made to administer
for funeral and burial expenses of the recipient. Those persons who
establish such a trust fund shall be given the opportunity to select the
funeral firm, funeral director, undertaker, cemetery or any other
person, firm or corporation to whom such payment is made of their choice
to provide for their burial arrangements and to change such selection at
any time to any funeral firm, funeral director, undertaker, cemetery or
any other person, firm or corporation to whom such payment is made,
located either in the state of New York or any other state. Any such
change of funeral firm, funeral director, undertaker, cemetery, or any
other person, firm or corporation to whom such payment is made, must be
carried out within ten business days following receipt of a request by
the purchaser to the funeral firm, funeral director, undertaker, ceme-
tery, or any other person, firm or corporation to whom such payment is
S. 3377--A 3 A. 6926--A
made with which the current trust fund was established. Funds in such
trust fund shall be placed in an interest bearing account pursuant to
section four hundred fifty-three of the general business law. Accumu-
lated interest from such account shall not be reported as "countable
income" pursuant to section two hundred eight of this title.
(b) An applicant for or a recipient of medical assistance in the state
of New York or any other state, OR A FAMILY MEMBER BENEFICIARY OF AN
AGREEMENT UNDER PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED
FIFTY-THREE OF THE GENERAL BUSINESS LAW, who enters into an agreement
pursuant to SUCH section four hundred fifty-three [of the general busi-
ness law] shall establish a single irrevocable trust fund FOR EACH INDI-
VIDUAL PERSON pursuant to paragraph (a) of this subdivision.
(c) A funeral firm, funeral director, undertaker, cemetery, or any
other person, firm or corporation which makes an agreement for and
accepts payment for such an irrevocable trust fund, shall comply with
the provisions of section four hundred fifty-three of the general busi-
ness law, and shall include the following statement in any such agree-
ment in conspicuous print of at least twelve point type:
DISCLOSURE
NEW YORK LAW REQUIRES THIS AGREEMENT TO BE IRREVOCABLE FOR APPLICANTS
FOR RECEIPT OF SUPPLEMENTAL SECURITY BENEFITS UNDER SECTION TWO HUNDRED
NINE OF THE SOCIAL SERVICES LAW OR OF MEDICAL ASSISTANCE UNDER SECTION
THREE HUNDRED SIXTY-SIX OF THE SOCIAL SERVICES LAW, OR FOR ACCOUNTS
ESTABLISHED FOR FAMILY MEMBERS UNDER PARAGRAPH (D) OF SUBDIVISION ONE OF
SECTION FOUR HUNDRED FIFTY-THREE OF THE GENERAL BUSINESS LAW, AND FOR
THE MONEYS PUT INTO A TRUST UNDER THIS AGREEMENT TO BE USED ONLY FOR
FUNERAL AND BURIAL EXPENSES. IF ANY MONEY IS LEFT OVER AFTER [YOUR] THE
FUNERAL AND BURIAL EXPENSES HAVE BEEN PAID, IT WILL GO TO THE COUNTY.
[YOU] THE APPLICANT MAY CHANGE [YOUR] THEIR CHOICE OF FUNERAL HOME AT
ANY TIME, WHILE EACH FAMILY MEMBER MAY DO SO ONLY UPON THE DEATH OF THE
APPLICANT.
(d) Any promotional literature prepared after January first, [nineteen
hundred ninety-seven] TWO THOUSAND ELEVEN by a funeral firm, funeral
director, undertaker, cemetery, or any other person, firm or corporation
for prearranged funeral and burial services must contain language
disclosing the irrevocable nature of burial trusts established for an
applicant or recipient of supplemental security income benefits or
medical assistance, OR PURSUANT TO PARAGRAPH (D) OF SUBDIVISION ONE OF
SECTION FOUR HUNDRED FIFTY-THREE OF THE GENERAL BUSINESS LAW.
S 4. Paragraph (g) of subdivision 3 of section 453 of the general
business law, as added by chapter 660 of the laws of 1996, is amended to
read as follows:
(g) Any promotional literature prepared after January first, [nineteen
hundred ninety-seven] TWO THOUSAND ELEVEN by a funeral firm, funeral
director, undertaker, cemetery, or any other person, firm or corporation
for prearranged funeral and burial services must contain language
disclosing the irrevocable nature of burial trusts established for an
applicant or recipient of supplemental security income benefits or
medical assistance OR PURSUANT TO PARAGRAPH (D) OF SUBDIVISION ONE OF
THIS SECTION.
S 5. Subdivision 6 of section 141 of the social services law, as added
by chapter 660 of the laws of 1996, is amended to read as follows:
6. If an applicant for or a recipient of public assistance or care or
of medical assistance under section two hundred nine or three hundred
sixty-six of this chapter dies having established an irrevocable trust
for the payment of his or her funeral expenses under section four
S. 3377--A 4 A. 6926--A
hundred fifty-three of the general business law, OR, TO THE EXTENT
TREATED AS AN EXEMPT ASSET UNDER FEDERAL GUIDELINES, FOR A FAMILY MEMBER
UNDER PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED
FIFTY-THREE OF THE GENERAL BUSINESS LAW, any funds remaining in such
trust after the payment of all funeral expenses must be paid over to the
social services official responsible for arranging for burials under
this section in the local government subdivision where the [decedent
resided] APPLICANT OR RECIPIENT WHO FIRST ESTABLISHED SUCH IRREVOCABLE
TRUST OR TRUSTS RESIDED AT THE DATE OF THEIR DEATH.
S 6. This act shall take effect on the first of January next succeed-
ing the date on which it shall become a law and shall apply to funeral
and burial accounts established on or after such effective date.