In re the Establishment of a Supplemental Needs Trust for Kennedy
John Kennedy, a disabled person under 65, receives Social Security disability payments. His guardian, Hope Kennedy, petitioned to establish a supplemental needs trust solely funded by these payments to avoid Medicaid spend-down requirements. The court addressed the apparent conflict between New York's Social Services Law concerning spend-down (366[2][a][7]) and supplemental needs trusts (366[2][b][2][iii]), determining that such trusts serve as an exception to general Medicaid rules. Noticing parties, the Nassau County Department of Social Services and the New York State Attorney General’s Office, did not object to the trust's formation or funding source, though the Attorney General raised objections to specific provisions. The court granted the application, approving the trust under specific conditions, including provisions related to the trustee's counsel, housing investments, annual accounting with the Surrogate's Court, and ensuring state reimbursement priority upon John Kennedy's death in accordance with POMS guidelines.