Placing the award in a special needs trust is crucial for retaining government benefits.
It may be hard to believe, but there may be some scenarios in which an individual might be left worse off financially after winning a personal injury settlement.
How could this be?
Well, in the case of a disabled individual, it is possible that the settlement may result in the termination of certain benefits such as Supplemental Security Income (SSI) or Medicaid. If the settlement is not ample enough to provide for the individual’s lifetime needs, the loss of these benefits could cause the individual serious financial hardship and suffering.
Fortunately, this outcome can be avoided with help from an experienced personal injury attorney such as Fernando D. Vargas. Two key tasks will be required.
#1: Aggressively Pursuing Appropriate Compensation.
In the case of a disabling injury, such as a serious brain injury, a spinal cord injury resulting in full or partial paralysis, an amputation, or any other catastrophic injury that leaves an accident victim unable to work and in need of ongoing medical or nursing care, it is absolutely critical to identify the amount of compensation that is needed and then pursue this amount aggressively.
After all, a personal injury settlement is not a windfall or “free money.” It is compensation for a legitimate need. If the need is not met, the settlement is not adequate. When it comes to a settlement, “good enough” is not good enough for us here at the Law Offices of Fernando D. Vargas. We strive for client success, and that means full and fair compensation that meets the victim’s needs.
Attorney Vargas has handled cases involving many different types of catastrophic injuries and he understands how these types of injuries can impact the victim’s life. He works closely with the victim’s doctor and with medical experts to help create a timeline for the physical recovery and accurately estimate the lifetime medical costs associated with the injury, to make sure the settlement is appropriate.
#2: Setting Up a Special Needs Trust.
Even if a disabled individual does not expect to be reliant on government benefits forever, it is still wise to protect their ability to collect SSI and Medicaid benefits from termination. This can be accomplished by ensuring any settlement award is administered through a special needs trust. This way, the individual will still be able to benefit from discounts on medications and other benefits, and these cost savings can help make their settlement award last longer.
When a special needs trust is advisable, Attorney Vargas will bring in a financial expert to help explain the benefits to the individual and assist with the setup of the trust.
