A Special Needs Trust For A Young Man Who Lost His Medicaid And SSI Benefits

If you you or a  friend has a family member that is a child with a disability you probably know the challenges it presents.  When a person with a disability is receiving Medicaid and/or SSI benefits and receives money (from a lawsuit or inheritance) it can unintentionally cause the child to lose government benefits.

We were invited by a trial attorney to participate in a case involving a young man with a developmental disability.  We were asked to create a special needs trust for this young man who lost his Medicaid and SSI benefits as a result of receiving the first of several payments from a personal injury settlement.  The first settlement was received several years ago. The Mother who was his Guardian did not advise the Court or the attorney that her son received government benefits.  Once the government agencies learned of the assets the benefits were terminated.

We successfully obtained court approval to create a special needs trust and transfer the guardianship assets into the trust. The final settlement proceeds were also placed in the trust. Now, the young man’s Successor Guardian can re-apply to Social Security for SSI benefits. Once approved he will automatically receive general Medicaid assistance. The special needs trust assets will last longer by having the government pay for certain basic approved items. The special needs trust assets will be used to enhance his life and qualify of care. The first priority of the Successor Guardian will be to have the young man tested so that he can receive appropriate support services including vocational training.

This is just one of many rewarding reasons why we do what we do!  Support your clients by consulting with a special needs planning attorney early in the litigation process.