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Assembly Bill A2291

2011-2012 Legislative Session

Establishes certain trusts as void as against public policy

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Archive: Last Bill Status - In Assembly Committee

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2011-A2291 (ACTIVE) - Details

Current Committee:
Assembly Judiciary
Law Section:
Estates, Powers and Trusts Law
Laws Affected:
Amd ยง7-3.1, EPT L
Versions Introduced in Other Legislative Sessions:
2009-2010: A3819
2013-2014: A1680
2015-2016: A4591

2011-A2291 (ACTIVE) - Summary

Makes the establishment of trusts which provide for the suspension, termination or diversion of the trust or beneficial interest in the event that the beneficiary needs medical, hospital or nursing care void as against public policy and allows the commissioner of social services to maintain an action to collect from such trust the beneficial interest and income for payment of certain expenses.

2011-A2291 (ACTIVE) - Bill Text download pdf 

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2291

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 18, 2011
                               ___________

Introduced  by M. of A. CLARK -- read once and referred to the Committee
  on Judiciary

AN ACT to amend the estates, powers  and  trusts  law,  in  relation  to
  establishing certain trusts as void as against public policy

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative intent. The legislature hereby finds that  many
citizens  are  engaging in the creation of trusts containing all or most
of their assets for the purpose of enabling them to qualify for medicaid
in the event of a protracted hospital stay  or  their  entrance  into  a
nursing  home.  While the creation of a trust to manage one's assets has
long been recognized as being a legitimate means of estate planning, the
legislature recognizes and by this  act  establishes,  as  a  matter  of
public policy, that the citizens of this state have an obligation to pay
for  their  own health care when able to do so and that the diversion of
normal payments from the beneficiary of a trust in order to  avoid  that
responsibility violates such public policy.
  S  2. Paragraph (b) of section 7-3.1 of the estates, powers and trusts
law is amended by adding a new subparagraph 5 to read as follows:
  (5) A DISPOSITION IN TRUST WHICH PROVIDES FOR THE  SUSPENSION,  TERMI-
NATION OR DIVERSION OF THE TRUST OR THE BENEFICIAL INTEREST OF ANY BENE-
FICIARY  OF SUCH TRUST IN THE EVENT THAT SUCH BENEFICIARY SHOULD REQUIRE
OR IS DIAGNOSED AS REQUIRING MEDICAL, HOSPITAL OR NURSING CARE  OR  LONG
TERM  CUSTODIAL,  NURSING  OR  MEDICAL CARE SHALL BE VOID AS AGAINST THE
PUBLIC POLICY OF THE STATE OF NEW YORK. THE COMMISSIONER  OF  HEALTH  IS
HEREBY  AUTHORIZED,  UPON  THE  APPLICATION  OF ANY SUCH BENEFICIARY FOR
MEDICAL BENEFITS, TO MAINTAIN AN ACTION TO COLLECT FROM SUCH  TRUST  THE
BENEFICIAL  INTEREST  OF  SUCH BENEFICIARY, INCLUDING THE INCOME AND ANY
PRINCIPAL AMOUNTS TO WHICH SUCH BENEFICIARY WOULD HAVE BEEN ENTITLED, BY
THE TERMS OF SUCH TRUST BY RIGHT OR IN THE DISCRETION  OF  THE  TRUSTEE,
HAD  SUCH  BENEFICIARY  NOT  REQUIRED  OR  BEEN  DIAGNOSED  AS REQUIRING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06586-01-1

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