Arizona special needs trusts are not only for parents looking to secure the financial future of the disabled children, they are vital to protecting that child’s right to government benefits in many events, including personal injury settlements.
As parents of special needs kids, stress, worry and uncertainty are simply a way of life. Every single day is preparation for the next second, the next moment when your child will need help with everyday activities that we all take for granted. Preparing for a future that doesn’t involve you as your child’s caretaker is a terrifying proposition, but reality none-the-less. This is most commonly why we at Family Trust for You are contacted by parents of special needs kids.
However, there are situations where a special needs trust is needed right now and not necessarily for the future. Personal injury settlements are just one of the reasons why you shouldn’t wait.
Special Needs Trusts for Personal Injury Settlement
Government benefits such as Supplemental Security Income and Medicaid can be terminated in the event of a personal injury settlement. A special needs trust, or supplemental needs trusts, can be drafted to protect the special needs individual’s right to maintain government benefits while receiving the personal injury settlement.
Government Assistance – Losing any government assistance can be catastrophic for families and individuals with special needs. From medical care to in-home care, government assistance is crucial to the livelihood of every special needs individual, and removing that assistance could have dire consequences. However, if the government believes that you have been awarded a large sum of money capable of being used for medical bills and living, they will revoke all financial assistance. Considering that many special needs individuals are not eligible to receive private health insurance, this revocation of Medicaid benefits could leave the individual with absolutely no health care.
Supplemental Trust – The most efficient way around this disaster is to draft a special needs living trust. By having Scott Schoeller sit down with you, determine your needs and create a personalized living trust for you and your family, you can legally receive any personal injury settlement and remain on Medicaid. The special needs trust will set aside the injury settlement to pay for any services or goods not covered by government assistance.
Establishing the Trust – A parent, grandparent, or guardian has the right to set up this special needs trust for the disabled individual or child. In some cases, the courts themselves will establish the trust to allow that the individual receives the personal injury settlement while not losing their government benefits.
Nature of Special Needs Trust – A (d)(4)(a) trust is an irrevocable grantor trust. The trustee will be required to file an SS-4 to apply for an EIN.
Need Help?
If you are not sure as to what legal document you currently have contact one of our professionals to help you with your estate planning. They will make sure you have all of your grounds covered and have the right legal documents that best suite your wants and needs.
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