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Dutchess OfficeSpecial Needs Trusts and Personal Injury Settlements
A personal injury settlement can have profound effects on the eligibility of an individual with disabilities to receive benefits from some government programs. Receiving a personal injury settlement does not affect Social Security Disability Income (SSDI) or Medicare. However, other benefits, such as Supplemental Security Income (SSI) and Medicaid, will be terminated once a settlement is received, unless the settlement is transferred to a Special Needs Trust.
Losing these much-needed government benefits could be catastrophic for an individual with disabilities. Although a personal injury settlement could provide funds that will help pay for medical care, it is likely that these funds, by themselves, will not be enough to cover these costs for the person’s entire life. The most significant potential loss involves Medicaid benefits, as many persons with disabilities are not eligible to receive private health insurance. In addition, many prescription drugs are costly without insurance and simply paying for these drugs could be enough to deplete an individual’s settlement.
A Special Needs Trust will allow the beneficiary to receive needs-based government benefits, such as SSI and Medicaid, as well as have a fund set aside to pay for services or goods that are not covered by these government benefits. These funds can be used to purchase a number of different items and services, including transportation, travel, legal services, nursing care, therapies, and educational opportunities. Establishing a Special Needs Trust will offer the beneficiary increased quality of life and much-needed security.
Creating a Special Needs Trust requires careful attention to a number of different variables. Personal injury attorneys should consult with a special needs planning attorney to determine if establishing a Special Needs Trust is the best course of action for their clients with disabilities.
6 Responses to “Special Needs Trusts and Personal Injury Settlements”
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February 25th, 2010 at 9:38 pm
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February 25th, 2010 at 9:42 pm
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