Can I Still Collect Medicaid After Receiving an Injury Settlement?
Personal injury settlements are assets that can affect your eligibility for Medicaid and other government assistance programs. However, this doesn't mean you shouldn't pursue an injury settlement for fear that you won't continue to qualify. There are strategies your attorney can help you with that will allow you to keep your personal injury settlement and still qualify for the government aid you depend on.
What Are Exempt Assets?
In order to qualify for Medicaid, you must have assets that are below the qualification threshold. This means you must have no more than $2,000 in cash, stocks, and bonds if you are over 65. Other exempt assets include your primary residence, your car, life insurance policies, and any monies you have saved for funeral or burial expenses.
What You Should Know About a Special Needs Trust
When you pursue a personal injury settlement, one of the first things you should discuss with your attorney is the potential for setting up a special needs trust. This trust can be set up by yourself, your parent, a legal guardian, or the court.
Moving your settlement into a special needs trust will allow you to use the funds you receive to cover medical expenses, etc. while remaining eligible for Medicaid and other government aid programs. It allows you to use these monies over time rather than having to exhaust them before applying for Medicaid.
In order to establish a special needs trust, you must meet rigid criteria. This includes that you must be able to establish your disability and demonstrate that the trust will provide the benefits you need in order to manage your health condition, living expenses, etc.
However, there is a catch. To qualify for the Medicaid Special Needs Trust exemption, it must include a provision that should you pass away before the funds within the trust are exhausted, the state will receive any funds remaining in the trust equal to the compensation received for medical assistance.
Call Today to Learn More
We invite you to contact the team at Welmaker Injury Law at (210) 828-6033 to learn more about how you can protect your personal injury settlement. We are happy to answer your questions and help you find the best strategies for your needs.