Case v. Fargnoli

In Case v. Fargnoli (182 Misc 2d 996 [Sup Ct, Tompkins County 1999]), the court stated that "As a practical matter, a power to change the remainder interests in a self-settled trust is very nearly a power to dispose of the principal." This was essentially dicta, however, as the court went on to rule that the assets of an irrevocable trust were available to the grantor for Medicaid purposes, because the trustees were empowered by the terms of the trust to distribute to him income and principal sufficient to support his standard of living. The power of appointment did not enter into the rationale for the court's decision.