Missouri SB 426: Modifies provisions of the ABLE Act

Bill Text

FIRST REGULAR SESSION
SENATE BILL NO. 426
100TH GENERAL ASSEMBLY
INTRODUCED BY SENATOR WILLIAMS.
Read 1st time February 21, 2019, and ordered printed.
ADRIANE D. CROUSE, Secretary.
2132S.01I
AN ACT
To repeal sections 209.625 and 472.010, RSMo, and to enact in lieu thereof two new
sections relating to the Missouri ABLE program.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 209.625 and 472.010, RSMo, are repealed and two new
2 sections enacted in lieu thereof, to be known as sections 209.625 and 472.010, to
3 read as follows:
209.625. 1. Notwithstanding any law to the contrary, the assets of the
2 ABLE program held by the board and the assets of any ABLE account and any
3 income therefrom shall be exempt from all taxation by the state or any of its
4 political subdivisions. Income earned or received from an ABLE account or
5 deposit shall not be subject to state income tax imposed pursuant to chapter
6 143. The exemption from taxation pursuant to this section shall apply only to
7 assets and income maintained, accrued, or expended pursuant to the
8 requirements of the ABLE program established pursuant to sections 209.600 to
9 209.645, and no exemption shall apply to assets and income expended for any
10 other purposes. Annual contributions made to the ABLE program held by the
11 board up to and including eight thousand dollars per participating taxpayer, and
12 up to sixteen thousand dollars for married individuals filing a joint tax return,
13 shall be subtracted in determining Missouri adjusted gross income pursuant to
14 section 143.121.
15 2. If any deductible contributions to or earnings from any such program
16 referred to in this section are distributed and not used to pay qualified disability
17 expenses or are not held for the minimum length of time established by the
18 appropriate Missouri board, the amount so distributed shall be added to the
19 Missouri adjusted gross income of the participant, or, if the participant is not

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20 living, the designated beneficiary.
21 3. The provisions of this section shall apply to tax years beginning on or
22 after January 1, 2015.
23 4. The assets held in an ABLE account under sections 209.600 to
24 209.645 shall not be considered the property of a conservatorship estate
25 established under chapter 475.
26 5. The provisions of subsection 4 of this section shall not apply
27 to ABLE accounts in the charge and custody of a public administrator.
472.010. When used in this code, unless otherwise apparent from the
2 context:
3 (1) "Administrator" includes any administrator de bonis non,
4 administrator cum testamento annexo, administrator ad litem and administrator
5 during absence or minority;
6 (2) "Child" includes an adopted child and a child born out of wedlock, but
7 does not include a grandchild or other more remote descendants;
8 (3) "Claims" include liabilities of the decedent which survive whether
9 arising in contract, tort or otherwise, funeral expenses, the expense of a
10 tombstone, and costs and expenses of administration;
11 (4) "Clerk" means clerk of the probate division of the circuit court;
12 (5) "Code" or "probate code" means chapters 472, 473, 474 and 475;
13 (6) "Court" or "probate court" means the probate division of the circuit
14 court;
15 (7) "Devise", when used as a noun, means a testamentary disposition of
16 real or personal property or both; when used as a verb it means to dispose of real
17 or personal property or both by will;
18 (8) "Devisee" includes legatee;
19 (9) "Distributee" denotes those persons who are entitled to the real and
20 personal property of a decedent under his will, under the statutes of intestate
21 succession or who take as surviving spouse under section 474.160, upon election
22 to take against the will;
23 (10) "Domicile" means the place in which a person has voluntarily fixed
24 his abode, not for a mere special or temporary purpose, but with a present
25 intention of remaining there permanently or for an indefinite time;
26 (11) "Estate" means the real and personal property of the decedent or
27 ward, as from time to time changed in form by sale, reinvestment or otherwise,
28 and augmented by any accretions and additions thereto and substitutions

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29 therefor, and diminished by any decreases and distributions therefrom. Under
30 the provisions of subsections 4 and 5 of section 209.625, assets held in
31 an ABLE account established under sections 209.600 to 209.645 shall not
32 be considered the property of the designated beneficiary of said
33 account for purposes of this subdivision when applied in chapter 475,
34 unless the estate is in the charge and custody of a public administrator;
35 (12) "Exempt property" means that property of a decedent's estate which
36 is not subject to be applied to the payment of claims, charges, legacies or bequests
37 as described in section 474.250;
38 (13) "Fiduciary" includes executor, administrator, guardi