Do you have a parent or other family member who needs special care at a nursing home, but you are afraid that Medicare or Medicaid will eat up their life savings?
Or take the type of client that I frequently represent - a child who received a substantial financial settlement after suffering a birth injury or lead poisoning causing severe cognitive impairments.
There is the concern in either case that Medicaid or Medicare could shut off, the savings or settlement proceeds would be spent down to pay for medical and related care, and after their exhaustion benefits would kick back in leaving the person penniless.
The Wall Street Journal has an article out about special needs trusts, legal devices which can protect assets in these situations. The money is set aside in the trust, beyond the reach of the government, and can be used to pay for special needs that Medicare or Medicaid will not pay for. Meanwhile, however, the person continues to receive those benefits.
In some personal injury cases, establishing a special needs trust is without a doubt the best course of action to take. The article explains more about how it works.
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