HB3603 Summary

• Creates the Family Trust Act establishing the Illinois Family Trust Board of Trustees to administer trust accounts for persons with disabilities residing in Illinois or 8 adjacent states.

• Establishes three types of trust accounts: first party trusts (using beneficiary's own assets), third party trusts (using others' assets), and charitable trusts (for pooled benefit of disabled individuals).

• Ensures trust distributions supplement but do not replace government benefits and are disregarded by state agencies when determining eligibility for assistance programs.

• Board of Trustees consists of 9 members appointed by Governor with Senate consent: 3 from families of mentally ill persons, 3 from families of developmentally disabled persons, and 3 business professionals serving 3-year terms.

• Permits settlors to withdraw from or revoke third party trusts with Board consent, and directs remaining funds upon beneficiary's death to charitable accounts, state Medicaid reimbursement claims, and designated remainder beneficiaries.