Preserving Claimant's Benefits

When a minor, or a disabled or an incompetent claimant has been the victim of a tort accident and receives compensation for injuries sustained in that accident, the use of one or more trusts as part of the structured settlement plan can preserve and expand the size of the recovery. Trusts that may be used in conjunction with a settlement annuity include Special Needs Trusts/Supplemental Needs Trusts, Living Trusts, Custodial Medical Trusts, Medicare Set-Aside Trusts and Reversionary Medical Trusts. These trusts are intended specifically to assist claimants requiring long-term medical care to ensure that funds will be available when needed. The trusts are set up with an initial cash reserve, which is left in a deposit account administered by a trustee who invests and manages the principal. The claimant is the beneficiary of the trust.