Thursday, June 21, 2012

Welfare - MA - assets - special needs trust

Lewis v. Alexander - 3d Cir. - June 20, 2012

http://www.ca3.uscourts.gov/opinarch/113439p.pdf

The court concluded that Plaintiffs‟ case is justiciable and that they have a private right of action under both Section 1983 and the Supremacy Clause of the Constitution.

On the merits of Plaintiff's challenge, it decided that the District Court was correct in its determination that the 50% repayment provision of 62 P.S. 1414, "special needs" provision, expenditure provision, and age restriction are all preempted by federal law.

However, it decided that the enforcement provision of Section 1414 – when used to enforce provisions not otherwise preempted by federal law – is a reasonable exercise of the Commonwealth's retained authority to regulate trusts.

Affirmed in part and reversed in part.



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