SETTLEMENT PROTECTION TRUST – WHAT IS IT AND WHEN SHOULD I USE IT?
By: Thomas D. Begley, Jr., Esquire, CELA CASE STUDY 1 Billy, age 6, was injured at birth. He recovers $1,000,000. Billy is not receiving any means-tested public benefits, such as SSI or Medicaid. One option is to place the $1,000,000 in the Probate Court, i.e., the Surrogate’s Office in New Jersey, or the Orphans’ Court…
DeCambre Reversed
By Thomas D. Begley, Jr., CELA Section 8 of the Federal Housing Act of 1937 provides a rental assistance program for low-income families and individuals. HUD pays rental subsidies so eligible families can afford decent, safe and sanitary housing. The programs are generally administered by Public Housing Agencies (PHAs). Generally, the family pays 30% of…
Using Self-Settled Special Needs Trusts in Medicaid Planning
By Thomas D. Begley, Jr., CELA Trusts for disabled individuals who have not reached age 65 and are funded with assets of the disabled person are authorized under OBRA-93.(1) The trust is for the benefit of disabled persons. The person much be under 65 at the inception of the trust. While the trust must be…
CONSIDERATIONS IN DRAFTING A DISABILITY ANNUITY SPECIAL NEEDS TRUST
by Thomas D. Begley, Jr., CELA There are four main issues to be considered in drafting any trust involving a potential Medicaid recipient. These include: Availability; Transfer of asset penalty; Payback provision; and Tax considerations, including income, gift and estate taxes. Let’s examine each of these issues in the context of a DASNT. Availability. The…