The application by Kim T., guardian of the property of L.T. (hereinafter "IP"), for an order reducing the amount of the bond from $800,000 to $310,000 is granted for a period of one year from the date of the entry of this order.

Kim T. was appointed the guardian of the property of the IP by order and judgment signed by this court on January 20, 2011. In the order and judgment, Kim T. was directed to file a bond in the amount of $800,00. Kim T. submitted the instant order to show cause, through counsel, to reduce the amount of the bond from $800,000 to $310,000. In her application, Kim T. asserts that she applied to obtain a surety bond in the amount of $800,000 with the Arthur B. Levine company. However, the surety company was unable to issue a bond in that amount because the current value of the guardianship assets are less than $800,000 at this time.

Kim T. asserts that the settlement form the underlying medical malpractice action

is structured as follows:

- $600.00 per month guaranteed for 9 years and 2 months certain commencing on May 15, 2001 and continuing through June 15, 2010;

- $8,179.39 per month guaranteed for 20 years certain and life thereafter, increasing by 3% compounding annually, with the first payment commencing on July 8, 2010. The first increase will take effect on July 8, 2011;

- lump sum payment of $25,000 on July 8, 2012;

- lump sum payment of $50,000 on July 8, 2017;

- lump sum payment of $75,000 on July 8, 2022;

-lump sum payment of $100,000 on July 8, 2027 [*2]

Pursuant to the infant compromise order, Karen T., the IP's mother, established a bank account at Apple Bank and deposited the monthly amount of $600.00 until June 15, 2010. Pursuant to the same order, Karen T. was authorized to withdraw up to $600 per month for the use and benefit of the IP. The current balance in that account is $314.33. Moreover, the IP receives $8,179.39 per month. However, Kim T. asserts that she is unable to deposit the monthly annuity checks at this time because she has not received her commission due to her inability to secure the $800,000 bond fixed by this court.

Kim T. asserts that the current guardianship assets to be considered in determining the amount of the bond should be as follows:

- Cash on hand at time of appointment:$314.33

- Annuity payments received and not cashed

(9 payments at $8,179.39)$73,614.51

- Annuity payments for one year at the rate

of $8,424.77$101,097.24

- Annuity payments for one year at the rate

of $8,677.51$104,130.12

- Lump sum payments on July 8, 2012$25,000

- Approximate interest for two years

(based on current average interest rate of 1.00%)$6,083.12

_____________

Total:$310,239.32

Accordingly, Kim T. seeks to have the bond reduced to $310,000 to reflect the actual amount of the current guardianship assets.

This court did not receive any papers in opposition to the instant motion.

Mental Hygiene Law §81.25(a) states, "Before the guardian...enters upon the execution of his or her duties, the court may require or dispense with the filing of a bond." The bond is calculated based upon the total value of the person's assets. The guardian of the property herein has demonstrated that she will have access to approximately $310,000 for at least the first year of the guardianship.

Accordingly, the application to have the bond reduced from $800,000 to $310,000 is granted for a period of one year from the date of the entry of this order. However, upon expiration of the one year period, the guardian shall once again make application to this court after a recommendation by the court examiner and submission of a copy of the annual accounting, as to whether or not the bond should remain the same or be increased.

This constitutes the decision and order of this court. [*3]

Date:June 14, 2011

J.S.C.