The Elder Law Minute™ PARENTS CANNOT USE GUARDIANSHIP FUNDS FOR BAT MITZVAH By Ronald A. Fatoullah, Esq. A recent New York County Court case for Nassau County held that parents cannot use a child’s guardianship funds for a bat mitzvah and family vacation. In the Matter of Geoffrey M. addressed the actual expenditures incurred in the bat mitzvah celebration of Sigal M. Sigal M. was born with cerebral palsy and a host of other issues resulting in significant developmental delays. As a result of a structured settlement from a medical malpractice action, Sigal M. was ultimately awarded approximately $6.9 million and this amount was placed in an infant guardianship account. When the account was established, the parents were told that they would have to request court approval prior to generating any “extraordinary expenses” other than those specifically established in the court’s order. The guardians were given a $20,000 annual allowance from Sigal’s funds for her immediate family’s vacation expenses, without obtaining prior court approval. In March of 2013, Sigal celebrated her bat mitzvah and her parents paid for a party that cost approximately $33,000. Her parents then applied to the court to obtain permission to reimburse themselves for the expenses incurred. They also asked for the release of an additional $65,000 in order to cover the cost of a trip to Israel for Sigal, her parents, and her three siblings. The New York County Court for Nassau County denied the family’s request for reimbursement and only allowed the expenditures relating to the costs of Sigal and her mother. The Court ruled that even though a bat mitzvah is culturally and religiously significant, it was not a necessity which could not otherwise be provided by her parents. The court went on to admonish the family, noting that “Sigal’s funds are not community property for family use.” The Court opined that “the family should not look to Sigal to pay for their own vacation, or for any other needs not required by Sigal.” The above described holding does not necessarily represent the opinion of every guardianship judge. There are those who would argue that an incapacitated person’s life is thoroughly enriched by those close to her – especially immediate family members. To take the participation of immediate family members out of the equation of what is considered a reimbursable expense is for some a harsh perspective. By the same token, the Court may have been eager to preserve Sigal’s assets for Sigal alone, and given her life span and the needs that will arise over the course of her life, it may have seemed more prudent to try and protect her assets. While the holding of the case may be disappointing to the ELDER LAW ROnald Fatoullah, ESQ, CELA* parents of Sigal M., it does reflect the level of Court involvement that exists when a disabled child wins a personal injury or medical malpractice action. Legal counsel is often required in order to navigate the various nuances of the guardianship arena, and to properly advise the guardians. Ronald A. Fatoullah, Esq. is the principal of Ronald Fatoullah & Associates, a law firm that exclusively concentrates in elder law, estate planning, Medicaid planning, guardianships, estate administration, trusts and wills. The firm has offices in Forest Hills, Great Neck, Manhattan, Brooklyn, and Cedarhurst, NY. 22 North Shore Towers Courier n February 2014 THINKING OF SELLING? When it comes to getting the highest price for your apartment, no one beats Linda Rappaport. Linda Rappaport is pleased to announce that prices are skyrocketing at North Shore Towers! 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