1Amending Title 20 (Decedents, Estates and Fiduciaries) of the 
2Pennsylvania Consolidated Statutes, in Pennsylvania Uniform 
3Transfers to Minors Act, further providing for court 
4authorization of a transfer and, in trusts, further providing 
5for pooled trusts for persons with disabilities.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1. Sections 5306(c)(3) and 7799.3 heading and
9subsections (f) and (h) of Title 20 of the Pennsylvania
10Consolidated Statutes are amended to read:

11§ 5306. Other transfer by fiduciary.

12* * *

13(c) Additional requirements for transfer.--A transfer under
14subsection (a) or (b) may be made only if:

15* * *

16(3) the transfer is authorized by the court if it
17exceeds [$25,000] $50,000 in value.

18§ 7799.3. Pooled trusts for [persons] individuals with
19disabilities.

1* * *

2(f) Notice.--The Office of Attorney General and the
3Department of Public Welfare shall make available information on
4the treatment of pooled trusts for the [persons] individuals
5with disabilities in the medical assistance program.

6* * *

7(h) Definitions.--As used in this section, the following
8words and phrases shall have the meanings given to them in this
9subsection:

10"Beneficiary." An individual with a disability who has the 
11right to receive services and benefits of a pooled trust.

12"Board." A group of persons vested with the management of 
13the business affairs of a trustee.

14"Disability." A physical or mental impairment as defined in 
15section 1614 of the Social Security Act (49 Stat. 620, 42 U.S.C. 
16§ 1382c).

17"Pooled trust." A trust which meets all of the following:

18(1) The trust contains assets of more than one
19beneficiary.

20(2) Each beneficiary [has] is an individual with a
21disability.

22(3) The trust is managed by a nonprofit corporation.

23(4) A separate account is maintained for each
24beneficiary of the trust, but, for purposes of investment and
25management of funds, the trust pools these accounts. Accounts
26in the trust may be established by the parent, grandparent or
27legal guardian of the individual with a disability, by the
28individual with a disability or by a court.

29(5) Upon the death of a beneficiary or upon the earlier
30termination of the trust, amounts remaining in the

1beneficiary's account must be distributed in accordance with
2one of the following:

3(i) The trust may retain up to 50% of the remaining
4balance for the benefit of other beneficiaries or other 
5individuals with disabilities. The remaining 50% of the
6balance must be reimbursed to the Commonwealth and any
7other state that provided medical assistance up to an
8amount equal to the total amount of medical assistance
9paid on behalf of the beneficiary.

10(ii) The amounts must be used to reimburse the
11Commonwealth and any other state that provided medical
12assistance up to an amount equal to the total amount of
13medical assistance paid on behalf of the beneficiary.

14"Trustee." A nonprofit organization that manages a pooled 
15trust.

16Section 2. The amendment of 20 Pa.C.S. § 5306(c)(3) shall
17apply to transfers initiated on or after the effective date of
18this section.

19Section 3. This act shall take effect in 60 days.