Supreme Court of Arkansas

In the Matter of James S. Corn, a Disabled Person

June 2, 20162016 Ark. LEXIS 202

Summary

The court held that a court-established special-needs trust under 42 U.S.C. § 1396p(d)(4)(A) is not contrary to Arkansas public policy when it includes the required state payback provision. It also held that Corn presented sufficient evidence of his disability through his testimony and Social Security Administration letters. The court reversed and remanded for determination whether the proposed trust satisfies the statute. Justice Rhonda K. Wood, joined by Justices Baker and Hart, dissented and would have affirmed because the trust was impermissibly self-settled and the circuit court lacked authority to create it with Corn’s assets.