After originally rejecting a petition to establish a supplemental needs trust because the petitioner was not the beneficiary's guardian, a New York surrogate's court approves a second petition to establish the trust nunc pro tunc to the original return date now that a guardian is in place. In the Matter of Daniel J.V. (N.Y. Surr. Ct., Bronx County, No. XX15, Nov. 15, 2011).
Daniel J.V., an adult with developmental disabilities, received an $88,027.39 bequest from his godmother. Daniel's brother held the money for Daniel's benefit and petitioned the Surrogate's Court to establish a supplemental needs trust to hold the funds so that Daniel would not lose his Medicaid and SSI benefits. After the return date of October 26, 2010, passed with no objection, the court denied the petition because Daniel did not have a guardian in place.
Daniel's brother spent the better part of the following year seeking guardianship, finally being named guardian of Daniel's property on October 13, 2011. His brother then filed a second petition to establish the supplemental needs trust, but he requested that the court grant the application nunc pro tunc to October 26, 2010, the return date on the original petition. The state did not object to the petition.
The New York Surrogate's Court, Bronx County, grants the petition nunc pro tunc to October 26, 2010. The court finds that the trust could have been established for Daniel prior to that date and that Daniel lacked the capacity to make the request himself. The court goes on to explain that "[t]he express purpose of an SNT is to permit a person such as the ward to have the trust assets available for those needs that are not covered by Medicaid without affecting his Medicaid eligibility. It would defeat the spirit of EPTL 7-1.12, if not also its express provisions, to deny its benefits to the ward based on a bequest which he lacked the capacity to obtain prior to incurring expenses covered by Medicaid and where no other person at that time was authorized to apply for an SNT on his behalf."
For the full text of this decision, go to: https://attorney.elderlawanswers.com/full-text-of-opinion-in-in-the-matter-of-daniel-jv-ny-surr-ct-bronx-county-no-xx15-nov-15-2011-9563
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