Trusts and Your Benefits

Usually when you apply for various beneits, such as Medicare, you are put under a fine-tooth comb regarding how much money you have, the assets you have, whether you have a bank account, whether you have a home, own a car and even how much your furniture is worth – piece by piece.

If all these things don’t add up to the right amount or less, you don’t get your benefits. One important tool in the situation is a special trust caed a specia needs trust. A special needs trust allows a person with medical expenses to maintain public benefits by putting away money from a lawsuit settlement into the trust to supplement what public benefits do not cover, such as housing or attendant care.

“Some personal injury lawyers are either missing the boat altogether or they only have bits and pieces and don’t bring in an expert quickly enough,” said Mary Alice Jackson, an elder law attorney with Boyle & Jackson in Sarasota, Fla., who recently spoke at a Web seminar on the topic.

“It’s a very specialized area. In addition to federal [law], each state may add its own statutory requirements,” said Bradley J. Frigon of the Law Offices of Bradley J. Frigon in Englewood, Colo., who also spoke.

Jackson recommends lawyers involve an expert on special needs trusts early on to determine whether one is needed at all.

Before figuring out whether you should set up a SNT, you have to determine the status of various public benefits, such as disability income, Social Security benefits, Medicare, Medicaid, food stamps or Section 8 housing.

“Never, ever take your client’s word on which type of benefits they receive,” advised Jackson.
If a client uses the words “disability” or “money from the government” or “medical benefits check,” you must follow up in order to protect those benefits, she said.

Each type of benefit has its own technical eligibility requirements.

For example, Social Security Income (SSI) is a needs-based benefit for low income individuals, including those with disabilities.

An individual must be under a certain income level and have less than $2,000 worth of property in order to qualify.

In addition, in most states SSI creates automatic eligibility for Medicaid.

“For most people, SSI is their ticket to get Medicaid,” said Frigon.

For that reason, attorneys must be careful that SNT funds don’t offset all SSI benefits, because as long as an individual is receiving even a dollar in SSI, he or she will continue to qualify for Medicaid.

“If the trust gives cash to someone [who is receiving $674 per month] in SSI and you give them $675, that person will lose their Medicaid. It can really create huge disasters,” said Jackson

These are just some of the things that can protect you and your beneits. To make sure you are truly and fully protected, make sure to consult an experienced attorney that specializes in these types of trusts and matters. This could save you your benefits, but it is specialized, so be sure to take the time to take care o it right.

Some information reprinted from Media Newswire.