What are Special Needs Trusts and When are they Used?
When it comes to financial settlements for disabled claimants, one of the major concerns is often whether the awarded funds will disqualify the person receiving them from accessing needs-based public assistance. In fact, having only a few thousand dollars in particular assets can quickly render a disabled individual ineligible for critical government programs.
Special Needs Trusts were devised to address this concern, as Federal law enables claimants to collect personal injury settlement funds without those funds being counted against them in deciding eligibility for public benefits.
Specifically, either a part or the entirety of the personal injury settlement can go into the trust, with those funds being used primarily to complement the government assistance and pay for needs not met with those particular benefits.
Additionally, based on the particular laws of the disabled claimant’s state, the funds within the Special Needs Trust can also be used toward needs including transportation, nutritional requirements, medical costs paid out-of-pocket and rehabilitation. Claimants may also be able to use the funds for “quality of life” expenses such as a residence or even a vacation for enjoyment.
The settlement consultants at Quest Settlements are extremely well-versed in both Federal and state regulations regarding Special Needs Trusts, and will inform you of what is, and is not, allowed in spending the trust funds.