Types of Special Needs Trusts
There are essentially two types of special needs trusts: third party trusts and self-settled trusts. This article will discuss the features that are common to both trusts. In addition, there are pooled trusts. Pooled trusts can be either third party or self-settled. The distinction between a third party special needs trust and a self-settled special…
Utilizing Support Trusts for Litigation Proceeds for a Minor
Situations often arise where a minor plaintiff is receiving a significant personal injury award or settlement. As a general rule, the proceeds are placed in an account with the surrogate of the county in which the minor resides. To withdraw funds from the surrogate’s account, the parent must make an application justifying the reason for…
Reducing a Medicaid Lien
There are three ways to reduce a Medicaid lien. These strategies can be used separately or in combination. Procurement Costs. Under New Jersey law,[1][SJR1] where a Medicaid recipient settles a case against a third party, the Medicaid lien can be reduced by attorneys’ fees and costs and expenses. Many lawyers simply ask for and receive…
When do I Need a Self-Settled Special Needs Trust?
In the settlement of litigation, the plaintiff is often receiving public benefits. The question then arises as to whether a special needs trust is required. There are certain types of public benefits that are means-tested. Others are not. Generally, means-tested public benefits require that the individual have assets of less than $2,000 and have certain…