36 The QUEE NS Courier • business • SEPTEMBER 19, 2013 for breaking news visit www.queenscourier.com ▶business Networking on the ‘Sunnyside’ The Sunnyside Chamber of Commerce hosted a networking event at Dazies recently, featuring special guest, Senator Michael Gianaris. Jerry Thornton, treasurer for the Queens Chamber of Commerce; Sophia Ganosis, Chief of Operations for the Queens Chamber of Commerce; Senator Michael Gianaris; Marie Konecko, State Committeewoman for the 37th Assembly District; Lily Gavin, owner of Dazies and Sunnyside Chamber of Commerce VP; and Swain Weiner, president of the Sunnyside Chamber of Commerce THE COURIER/Photo by Mike DiBartolomeo CELEBRATING GRANDPARENTS The residents and patients of the Parker Jewish Institute for Health Care and Rehabilitation and their families enjoyed a spectacular Grandparents Day celebration on Sunday, September 8. Coordinated by Parker’s Department of Therapeutic Recreation, it was an afternoon of live music, ice cream and other treats, and classic fairground attractions - including balloon artists, stilt walkers, a petting zoo, pony rides, and a dunk tank, and a special recognition of Parker’s centenarians. The Elder Law Minute TM Trustee Held Responsible for Excessive Distributions By Ronald A. Fatoullah, Esq. and Yan Lian Kuang-Maoga, Esq. Being a trustee is not a simple task. Trustees of special needs trusts (SNT) must be careful to explore the possibility of using government benefits to pay for expenses of the beneficiary, or risk having to reimburse the trust for having misspent trust assets. On June 25, 2013, a New York trial court ordered a trustee of a SNT to reimburse the trust for nearly $180,000 that was misspent on private caregivers, cab rides, and medications that could have been obtained from government sources. The beneficiary of the trust was injured as a child. In 2003, $422,012.54 from the beneficiary’s personal injury lawsuit was placed into a special needs trust for his benefit. The trust specifically stated that the trustees had to make a good-faith effort to determine whether Medicaid would cover home health care services prior to expending trust funds for that purpose. The trust also required that the trustees take the beneficiary’s eligibility for government benefits into account before making discretionary payments to him or to his family. By 2009, only $3,253.03 remained in the trust. When BNY Mellon, the trustee, filed an order requesting that the court approve its account and release it as trustee, the court opened an investigation. The independent examiner discovered that BNY Mellon had paid for $118,064.50 worth of home health care without making an inquiry into whether the beneficiary could qualify for elder law Medicaid payments for his care. BNY Mellon had also paid for $56,320 worth of cab fares for the beneficiary’s family and had made payments to the family that rendered the benefiary ineligible for SSI and Medicaid. The Supreme Court of New York, Kings County, ruled that BNY Mellon must repay the trust for $176,905.99 that it improperly spent while it was trustee. The court found that “it is clear that the trustee relegated its duties to others, failing to make the necessary inquiries to ensure the longevity of the Trust Fund. It is clear to the Court that BNY breached its duty under the Trust agreement and failed to properly administer the Trust.” A special needs trust, also known as a supplemental needs trust, is a trust specifically designed to preserve the assets of a disabled person without jeopardizing his or her eligibility for government benefits. This enables the disabled person to have a better quality of life by having the funds in the SNT to supplement “luxury” expenses that are not covered by any governmental program. Not only is it prudent, but it is a requirement that a trustee explore the possibility of a governmental program being able to cover certain expenses of the beneficiary. For example, Medicaid can pay for home care services if the beneficiary needs them. Furthermore, if a beneficiary is already receiving government benefits, the trustee must ensure that the trust distributions do not disrupt the beneficiary’s continuing eligibility. For example, if a beneficiary is receiving Supplemental Security Income (SSI), the trustee may not want to use trust funds to pay for expenses of shelter or food for the beneficiary, as those payments will affect SSI benefits. Whether you are currently serving as trustee or are considering accepting an appointment as a trustee of a SNT, it is important to consult with an elder law/special needs attorney regarding your duties and obligations as the trustee. An experienced attorney can also advise you about the various government benefits that you should be mindful of when making decisions about distributions. Ronald A. Fatoullah, Esq. is the principal of Ronald Fatoullah & Associates, a law firm that exclusively concentrates in elder law, estate planning, Medicaid planning, special needs, guardianships, estate administration, trusts and wills. The firm has offices in Forest Hills, Great Neck, Manhattan, Brooklyn, and Cedarhurst, NY. This article was written with the assistance of Yan Lian Kuang-Maoga, an elder law attorney with the firm. Ronald Fatoullah & Associates can be reached by calling (718) 261-1700, 516-466-4422, or toll free at 1-877-ELDER-LAW or 1-877-ESTATES. ROnald Fatoullah, ESQ, CELA* Photos Courtesy Parker Jewish
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