PERSON WITH A SEVERE AND CHRONIC OR PERSISTENT DISABILITY. Any provision hereof to the contrary, if any person (other than the Grantor) with a severe and chronic or persistent disability as defined by Section 7-1.12 of the New York Estates, Powers and Trusts law, as amended, is entitled to a trust share hereunder, then said beneficiary’s interest in the trust share shall be held and managed by the Trustee for the benefit of said beneficiary, as provided for herein. A. The Trustee shall collect the income therefrom and, after deducting all charges and expenses properly attributable thereto, shall, at any time and from time to time, apply for the benefit of the beneficiary, so much (even to the extent of the whole) of the net income and/or principal of this Trust as the Trustee shall deem advisable, in their sole and absolute discretion, subject to the limitations set forth below. The Trustee shall add to the principal of such Trust the balance of net income not so paid or applied. B. It is the Grantor’s intent to create a Supplemental Needs Trust which conforms to the provisions of Section 7-1.12 of the New York Estates, Powers and Trusts law, or any successor statute thereto. The Grantor intends that the Trust assets be used to supplement, not supplant, impair or diminish any benefits or assistance of any federal, state, county, city, or other governmental entity for which the beneficiary may otherwise be eligible or which the beneficiary may be receiving. Consistent with that intent, it is the Grantor’s desire that, before expending any amounts from the net income and/or principal of this Trust, the Trustee consider the availability of all benefits from government or private assistance programs for which the beneficiary may be eligible and that, where appropriate and to the extent possible, the Trustee endeavors to maximize the collection of such benefits and to facilitate the distribution of such benefits for the benefit of the beneficiary. C. None of the income or principal of this Trust shall be applied in such a manner as to supplant, impair or diminish benefits or assistance of any federal, state, county, city, or other governmental entity for which the beneficiary may otherwise be eligible or which the beneficiary may be receiving. D. No judge of any Court shall have the power to order the invasion of principal in contravention of this provision. This provision is intended to negate and eliminate any discretion granted to any Court by Section 7-1.6 of the Estates Powers and Trusts Law (E.P.T.L.). E. The beneficiary does not have the power to assign, encumber, direct, distribute or authorize distributions from this Trust. F. Notwithstanding the above provisions, the Trustee may make distributions to meet the beneficiary’s need for food, clothing, shelter or health care even if such distributions may result in an impairment or diminution of the beneficiary’s receipt or eligibility for government benefits or assistance but only if the Trustee determines that: (i) the beneficiary’s needs will be better met if such distribution is made, and (ii) it is in the beneficiary’s best interests to suffer the consequent effect, if any, on the beneficiary’s eligibility for or receipt of government benefits or assistance; provided, however, that if the mere existence of the Trustee’s authority to make distributions pursuant to this paragraph shall result in the beneficiary’s loss of government benefits or assistance, regardless of whether such authority is actually exercised, this paragraph shall be null and void and the Trustee’s authority to make such distributions shall cease and shall be limited as provided above, without exception. G. Upon the demise of said beneficiary, any balance remaining of the trust share shall be distributed to ▇▇▇▇ ▇▇▇; or, if ▇▇▇▇ ▇▇▇ shall not then be living, then to the surviving issue of the parent of the beneficiary per stirpes and subject to the provisions of ARTICLE IV (4) herein.
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Sources: Trust Agreement, Trust Agreement