Medicaid is a government program of course and you know it is need based if you are signed up.
Were you just awarded a structured settlement?
If so, taking a lump sum for that settlement could indeed keep you from still receiving Medicaid benefits. That said you might be able to find a way to keep your benefits.
Lump Sum Payment
First of all one thing you can do is to not take the lump sum and instead take the payments. Yet the size of the payments could even disqualify you from getting Medicaid benefits.
So there is another solution. It’s called a Special Needs Trust. You see, the structured settlement, whether in a lump sum or payments, is considered income. That is why it would make it difficult for you to get Medicaid.
Yet the trust would not be income, and it would be the payee. Without the trust in place, you are the payee. If you want to go about setting up a trust, you need to know that it is usually going to have to go through the court system. That could take time, but you might benefit from reaching out to an attorney to help guide you through the process.
Special Needs Trust
It’s good to know that there is a way to keep your Medicaid if you are receiving a structured settlement. You will want to do things by the book so that you don’t risk losing your Medicaid benefits.
The answer is the Special Needs Trust. That trust will keep you from being the payee, and it will be your answer to keeping your Medicaid benefits.
If you are set up with the Special Needs Trust, then you’re going to be able to use the disbursements from that trust just like you would if you were getting the money straight from the structured settlement. Of course, you’re going to want to know more about the specifics before you establish such a trust.
The trust acts as a third party, and you will want to know that you aren’t doing something that is going to make things financially difficult for you. One thing you do know right now is the trust could possibly help you be able to keep receiving Medicaid benefits.
You’re going to have to look into what’s required of you, but perhaps the switch will benefit you in a positive way. Is the Special Needs Trust the answer in your situation?