A Special Needs Trust often becomes part of the settlement for two main reasons; either the person has been catastrophically injured and left incapacitated mentally or physically, or when the injured party is receiving government benefits. If you are receiving Supplemental Security Income (SSI) or Medicare the settlement money you receive could affect or eliminate your eligibility to continue receiving those benefits. In order to maintain your eligility we establish a Special Needs Trust (SNT) which allows the proceeds from your settlement to be placed in the trust and prevent disqualification from receiving these needs-based benefits.
Typically when a Special Needs Trust becomes part of the settlement we utilize a structured annuity that is paid directly into the trust. This provides guaranteed, state and federal tax-free payments to flow steadily into the trust while maintaining your eligibility. The money from the Special Needs Trust can pay for the majority of items that Medicare will not cover, such as:
- Out of pocket medical expenses
- Speech rehabilitation and physical therapy
- Personal attendant care
- Purchasing a modified vehicle
- Travel and new items for the home