In re Shannon

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Eastchester Rehabilitation & Health Care Center cared for Edna Shannon for four years. During the fourth year, Family Service Society of Yonkers (FSS Yonkers) was appointed as guardian of Shannon’s person and property. Eastchester later made a claim with FSS Yonkers seeking compensation for services it rendered to Shannon that were not covered by Medicaid. Thereafter, Westchester County Department of Social Services (DSS) advised FSS Yonkers that Shannon was indebted to DSS for medical assistance paid on her behalf. After Shannon died, FSS Yonkers commenced this proceeding to settle its final account and seeking a determination as to how it should disburse Shannon’s remaining property. Supreme Court held that the balance of Shannon’s remaining property should be paid to DSS. The Appellate Division reversed. The Supreme Court reversed, holding (1) N.Y. Ment. Hyg. Law 81.44 does not permit a guardian to retain property of an incapacitated person after the incapacitated person has died for the purpose of paying a claim against the incapacitated person that arose before that person’s death; and (2) inasmuch as Eastchester’s claim for medical services rendered to Shannon was unrelated to the administration of her guardianship, section 81.44 does not allow FSS Yonkers to withhold from Shannon’s estate funds to pay Shannon’s debt to Eastchester. View "In re Shannon" on Justia Law