Matter of Hoelzer v. Blum

In Matter of Hoelzer v. Blum (93 AD2d 605 [2d Dept 1983]), the Court considered the effect of another section of the EPTL, section 7-1.6 (a). That section provides that the court may make an allowance from the principal of a trust to provide support for an income beneficiary whose support is not otherwise provided for, on the condition that the beneficiaries of the trust provide written consent. This is very similar to section 7-1.9, since it also provides a means for the trust corpus to be reached in contradiction of the express terms of the trust. In Hoelzer, Social Services denied the application for Medicaid benefits, stating that the applicant was not a person requiring medical assistance because she had not made a bona fide effort to invade the corpus of the trust. The ruling of Hoelzer, therefore, makes it clear that social services may not treat trust assets as being potentially available to an applicant or spouse where they cannot be reached without consent of the trust beneficiaries.