This is one of the more common questions we receive, whether or not you lose you medicaid benefits after receiving an injury settlement. The answer may seem simple, but it's not so cut and dry. If you fail to do one of the two things below, then yes, that is a very real possibility. Below, our Lincoln personal injury lawyer will walk you through what those two options are:
1) Spend Your Settlement Money on “Excluded Assets”
Medicaid has a list of something called “excluded assets.” According to our Lincoln personal injury lawyer, spending your settlement money on these assets will allow you to keep your Medicaid benefits.
Examples of Excluded Assets in Lincoln
- A car,
- A house, or home improvements,
- Household goods,
- A small savings account,
- Debt created by injury, and
- Many more.*
*Call Steffens Law Office at (308) 767-2061 for the entire list.
The Benefits of Spending Your Settlement on Excluded Assets
- Keeps you in control of your money.
- No wait time for legal documents.
The Disadvantages of Spending Your Settlement on Excluded Assets
- A limited list of exclusions.
- No safeguards for your spending.
2) Create a “Special Needs Trust”
The second option you can take to keep your Medicaid benefits is creating something called a “special needs trust.”
How to Create a Special Needs Trust
- Hire an experienced Lincoln personal injury lawyer to draft the document.
- File the document in county court.
- Give Medicaid adequate notice of the hearing.
- Appoint a trustworthy person as the trustee.
- Put the settlement money into the account owned by your trust.
- The trustee will buy you things—not provided by Medicaid—with money in the trust.
The Benefits of Putting Your Settlement in a Special Needs Trust
- The trust provides for you over a long period of time.
- Safeguards your settlement money. This is especially true if you easily overspend.
- Provides for any special needs that Medicaid doesn’t cover. These could include expensive medications or therapies.
The Disadvantages of Putting Your Settlement in a Special Needs Trust
- Extra cost.
- You will need to hire an experienced Lincoln personal injury lawyer.
- The cost can be between $1,500 and $2,500 for documents.
- Wait time.
- Following the Medicaid procedure takes time.
- It can take a month or two to complete.
- The trustee retains control of your money. Technically, you don’t have the final say on how this money is spent.
Contact Our Lincoln Personal Injury Lawyer for Assistance Today!
It’s unfortunate that a settlement may cause you to lose your Medicaid benefits, but it doesn’t have to be that way. Our personal injury law firm would be happy to equip you with the tools you need to retain the settlement money you deserve while holding on to your life-saving Medicaid.
If you’ve received an injury settlement, or you have any other questions regarding the legal process, give our Lincoln personal injury lawyer a call at (308) 767-2061 or fill out our online contact form and someone will get back to you asap. We’ll gladly walk you through each step so you’re better prepared for the road ahead.