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73 A.3d 405
N.J.
2013
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Background

  • J.B. and W.B. are divorced parents of A.B., autistic; PSA deferred post-secondary education issues.
  • PSA provided $50,000 yearly child support for each child and anticipated A.B.’s lifelong support needs; contemplated a special needs trust but did not finalize one.
  • In 2009, A.B. began attending a Connecticut post-secondary program for individuals with special needs; J.B. moved to direct his child support into a special needs trust for A.B.’s education and living expenses.
  • Trial court denied modification to redirect support into a trust, citing lack of changed circumstances and insufficient plan detail; Appellate Division affirmed.
  • Supreme Court granted certification to consider whether a special needs trust could substitute for part of the support obligation and under what conditions guardian ad litem oversight is appropriate.
  • Court addresses the use and limits of special needs trusts, the standard for modifying PSAs, and when a guardian ad litem may be warranted.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Can a parent modify a negotiated PSA by creating a special needs trust funded with child support? J.B. seeks to redirect support into a SNT for A.B.’s benefits. PSA terms should control; no sufficient changed circumstances or plan. No, inadequate plan and lack of demonstrated benefit warrant denial.
What standard governs modification of a PSA when deferred issues involve a disabled child? Changed circumstances or best interests permit modification. modification requires concrete plan and evidence of benefit. Changed circumstances or best interests standard governs; need detailed plan.
Must a detailed plan exist for a special needs trust to be approved? A plan exists in concept; should be evaluated on best interests. Plan is speculative and lacks trustee, disbursement terms, or eligibility details. Yes; court requires a specific, complete plan with trustee and funding details.
Should a guardian ad litem be appointed when a disabled child is the subject of a SNT proposal? A.B. should have independent advocacy; guardian appointment warranted. No automatic guardian; case does not involve custody; plan lacked detail. Trial court did not abuse discretion in not appointing a guardian; may appoint if plan becomes informed.

Key Cases Cited

  • Lepis v. Lepis, 83 N.J. 139 (N.J. 1980) (changed circumstances standard for modification of support)
  • Conforti v. Guliadis, 128 N.J. 318 (N.J. 1992) (equitable authority to modify PSAs for fairness)
  • Konzelman v. Konzelman, 158 N.J. 185 (N.J. 1999) (contractual nature of PSAs; enforceability with fairness)
  • Pascale v. Pascale, 140 N.J. 583 (N.J. 1995) (child's support belongs to the child; government benefits impact)
  • In re Keri, 181 N.J. 50 (N.J. 2004) (guidance on trusts maximizing beneficiary benefit under benefits rules)
  • In re Jennings v. Comm’r, N.Y.S. Dep’t of Social Servs., (not NJ official reporter) (App. Div. 2010) (trust planning for disability benefits (non-NJ source cited))
  • Mazart & Spielberg, Trusts for Disabled Persons, (not NJ official reporter) ((law review)) (discussion of special needs trusts and benefits)
Read the full case

Case Details

Case Name: J.B. v. W.B. (069972)
Court Name: Supreme Court of New Jersey
Date Published: Aug 20, 2013
Citations: 73 A.3d 405; 215 N.J. 305; A-111-11
Docket Number: A-111-11
Court Abbreviation: N.J.
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    J.B. v. W.B. (069972), 73 A.3d 405