To amend title XVI of the Social Security Act to clarify that the value of certain funeral and burial arrangements are not to be considered available resources under the supplemental security income program.

Amends title XVI (Supplemental Security Income) (SSI) of the Social Security Act to provide that the value of certain prepaid funeral and burial arrangements involving an irrevocable trust whose named beneficiary is the funeral provider are not to be considered, under the SSI program, as resources available to the individual.

Includes among such arrangements a life insurance policy irrevocably assigning benefits covering funeral goods and services to: (1) a funeral provider, or (2) an irrevocable trust fully funding such goods and services and naming the funeral provider as the trust beneficiary.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4176 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4176

To amend title XVI of the Social Security Act to clarify that the value 
  of certain funeral and burial arrangements are not to be considered 
  available resources under the supplemental security income program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 8, 2012

 Mr. Southerland introduced the following bill; which was referred to 
                    the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend title XVI of the Social Security Act to clarify that the value 
  of certain funeral and burial arrangements are not to be considered 
  available resources under the supplemental security income program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CERTAIN FUNERAL AND BURIAL ARRANGEMENTS NOT CONSIDERED 
              RESOURCES.

    (a) In General.--Section 1613(d) of the Social Security Act (42 
U.S.C. 1382b(d)) is amended--
            (1) in paragraph (2)(B), by inserting ``, including a trust 
        or arrangement described in paragraph (5)'' after ``irrevocable 
        arrangement''; and
            (2) by adding at the end the following:
    ``(5) If--
            ``(A) an individual or the individual's spouse enters into 
        an irrevocable contract with a provider of funeral goods and 
        services for a funeral; and
            ``(B) the individual or the individual's spouse funds the 
        contract by--
                    ``(i) prepaying for the goods and services and the 
                funeral provider places the funds in a trust;
                    ``(ii) establishing an irrevocable trust fully 
                funding the goods and services and the funeral provider 
                is the named beneficiary of the trust; or
                    ``(iii) purchasing a life insurance policy that 
                provides benefits to pay for the goods and services and 
                irrevocably assigning such benefits to--
                            ``(I) the funeral provider; or
                            ``(II) an irrevocable trust fully funding 
                        the goods and services and the funeral provider 
                        is the named beneficiary of the trust,
then the irrevocable contract and the funding arrangement for the 
irrevocable contract shall not be considered a resource available to 
the individual or the individual's spouse.''.
    (b) Conforming Amendment.--Section 1613(e)(3)(B) of such Act (42 
U.S.C. 1382b(e)(3)(B)) is amended by striking ``In the case of an 
irrevocable trust established by an individual, if there are any 
circumstances under which payment from the trust'' and inserting 
``Except as provided in subsection (d)(5)(B)(ii), if there are any 
circumstances under which payment from an irrevocable trust established 
by an individual''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments for supplemental security income benefits under title 
XVI of the Social Security Act for months beginning on or after the 
date of enactment of this Act.
                                 <all>