A Pennsylvania appeals court rules that income from a father’s special needs trust is available to pay child support. Mencer v. Ruch. (PA.Super 182, 2007) No. 1902 WDA 2006.
Heather Mencer instituted a support action against Gary Ruch, the father of her daughter. Due to a brain injury that occurred prior to the daughter’s birth, Mr. Ruch was on public assistance. Ms. Mencer entered into an agreement that Mr. Ruch’s support obligation would remain at zero unless he became eligible for Social Security disability benefits. She later became aware that Mr. Ruch was the beneficiary of a supplemental needs trust created under New York law from proceeds of a personal injury action.
Although the trust had distributed child support payments to a child from a previous relationship, the trial court adopted the order of a hearing officer that income from the trust should not be considered for purposes of child support. Ms. Mencer appealed, arguing that the trial court’s failure to include Mr. Ruch’s trust funds as income would have material impact on her daughter.
The Superior Court of Pennsylvania reverses, finding that the trial court misapplied the law by failing to consider as income the distributions made by the trust in calculating Mr. Ruch’s child support obligations. The court rejects Mr. Ruch’s argument that the trustee is not permitted to pay child support from the trust under applicable New York law, ruling that the father, rather than the trustee, is obligated to pay the child support.
