Yes. Special Needs Trusts (SNTs) are often used together with structured settlements. When used in tandem, SNTs and structured settlements offer complimentary benefits that can enhance the quality of life for severely injured plaintiffs and their family. Structured settlements provide a steady stream of income to an injured party through an annuity purchased by a defendant. A SNT enables the disabled individual to retain Medicaid and SSI benefits (or become eligible for them if under age 65) and other medical care not covered by government assistance. Funds are also available for needs not covered by government programs including additional home care, companions, vehicles and in some cases, a residence.

When setting up a SNT/structured settlement, advisors must be cognizant of federal and state requirements and follow them properly so not to forfeit the client’s ability to access these government benefits. If estate planning documents are incorrectly drafted, the government may demand reimbursement of government payments prior to the injured party’s death.