MHL ARTICLE 81 - New York State Unified Court System

Matter of “Jane Doe,” An incapacitated person, 16 Misc. 3d 894; 842 N.Y.S. 2d 309 (Sup. Ct.,
Kings County, 2007)(Leventhal, J.)
Court imposed constructive trust on funds that had been transferred to AIP’s spouse for Medicaid
planning purposes after spouse failed or refused to abide by plan to use the funds for the AIP’s
benefit and directed the bank holding the funds to transfer the funds from the IP’s spouse to the IP.
(iv) Dispensing with Annual Accounting
Estate of Tauba Korn, 3/9/2010, NYLJ 45 (col. 1) (Surr. Ct. Kings Cty.) (Surr. Lopez-Torres)
Surrogate approves SNT but modifies its terms so that the Trustee is not required to file an annual
accounting.
Matter of Wayne Marks, 3/10/2010 NYLJ 38 (col.6) Surr. Ct. Kings Cty. (Surr. Lopez-Torrez)
SNT approved with the modification that the trustee was not obligated to file Annual Accountings
or a Final Accounting with the Clerk of the Court.
Matter of Del Toro, 2008 NY Misc. LEXIS 672; 239 NYLJ 11 (Surr. Ct., Suff. Cty., 2008)(Surr.
Czygier)
Court dispenses with requirement in proposed trust instrument requiring annual accounting by trustee
of SNT since trustee must notify the social services district in advance of certain transactions, for
example those tending to substantially deplete the trust principal.
Matter of Rosen (Pepe), 12/26/2007, NYLJ 38, (col. 4)(Surr. Ct. Suff. Cty)(Czygier, Surr.)
Where guardian (17-A) sought authorization to create an SNT for the benefit of the ward to be
funded with the wards’ assets, the Surrogate dispensed with the requirement of an Annual
Accounting because the trustee was required by law and the terms of the trust to give notice to the
local social services district in advance of certain transactions and would be required to judicially
settle her account prior to being discharged.
(v) Accounting Required Under Article 81 Methods
Matter of Lula A., 4/27/2010, NYLJ 34 (col.1) (Surr. Ct. Bronx Cty.)(Surr. Holtzman)
In a self-petition for an SNT, Surrogate held that a provision requiring an accounting in the nature
of an Art 81 accounting was improper and directed that the petition be granted without that
provision. The Surrogate reasoned that such a provision may be appropriate in an SNT for a disabled
person who is a ward of a guardian, but not for someone who is self-petitioning.
89