Important information before you settle your brain injury case:
SPECIAL NEEDS TRUSTS -- SUPPLEMENTAL NEEDS TRUST
Planning for receipt of large sums of money also raises serious questions concerning eligibility for government benefits which are dependent upon financial circumstances. Since many individuals who have sustained brain injury are receiving some form of government assistance, advance planning before you receive a settlement in your brain injury case is essential. Programs such as Medicaid have income restrictions placed upon individuals. If funds are received without considering Medicaid implications, a claimant runs the risk of become disqualified from Medicaid and thus losing these important and valuable benefits.
What is a Special Needs Trust?
A special needs trust also known as a supplemental needs trust is a trust that is designed to supplement Medicaid benefits instead of eliminating or replacing these benefits. The trust is set up to provide for a claimant's needs that are not provided for by Medicaid and to supplement those needs covered by Medicaid. Thus, you can keep you settlement proceeds and still receive Medicaid benefits.
What you and your brain injury lawyer must know before setting up a special needs trust in a brain injury case.
At the time the trust is set up, if Medicaid has spent any money for the benefit of the claimant, it first must be reimbursed before the money can go into the trust.
At the time that the brain injured individual dies, before any money that remains in the trust can be distributed to beneficiaries, Medicaid must be paid back for the amounts it spend during the lifetime of the trust.
A trust can only be created for a disabled person under the age of 65.
What can the trust provide for?
Medical costs for needs not covered by Medicaid; Expenses for home care attendants not covered by Medicaid; Rehabilitation expenses not covered by Medicaid; Special living facilities not covered by Medicaid; Transportation expenses such as specially equipped cars or vans; Educational equipment such as computers and other learning devices; Recreational expenses such as vacations or other travel expenses that will enhance the quality of life for the injured individual; The additional costs of private accommodations in shared housing units.
WE ARE PROUD THAT WE WERE THE ATTORNEYS FOR A VICTIM OF BRAIN DAMAGE IN A PRECEDENT SETTING CASE IN NEW YORK STATE WHICH WAS ONE OF THE FIRST CASES IN THE NATION ALLOWING THE CREATION OF A SPECIAL NEEDS TRUST.
