It is imperative that clients receive the optimal mix of settlement products and services for their case. With that in mind, many cases are best served by the addition of trust programs in combination with the core structured settlement annuity.
+ Periodic payments coupled with asset growth solutions
+ Flexibility to address changing needs of the payee
+ Work in combination with government benefits programs
We have evaluated many trust companies and their programs and have selected only those that are fairly and competitively priced to deliver the best services, reputation, and value to all the parties in the settlement.
Settlement Management Trusts are essential when the settlement plan would benefit from adding market-related growth along with flexibility to cover unforeseen needs. The overall settlement plan may be augmented by placing some funds in a revocable donor trust that invests and manages funds for the trust beneficiary.
At Structures, we maintain relationships with leading trust companies around the nation that work in partnership with your settlement consultant to develop an overall settlement solution that delivers leading trust and investment management services for the settling parties. For additional information on these trust programs please contact your settlement consultant or the Structures Team.
Sometimes referred to as Settlement Preservation or Protection Trusts, SMTs can deliver market-related performance and provide potential appreciation in value. They can provide a needed cushion for unforeseen expenses, thus protecting the structured settlement cash flow.
One of the most significant benefits of an SMT is that it can provide the assistance of a professional trust officer to support the beneficiary and their family on an on-going basis — as called for in the trust agreement. The combination of a blended approach in combining the many benefits of the structured settlement annuity with the flexibility and features of a trust can prove to be a beneficial strategy.
In certain cases, settling parties may be receiving or be eligible to receive certain governmental benefits such as SSI payments and Medicaid. If these individuals are unable to work and are disabled, their advisors may want to consider the possible use of a Special Needs Trust as a significant part of their overall settlement plan.
+ Can allow government benefits to continue to the payee
+ Funds may be used for eligible expenses not covered by government programs
+ In appropriate cases, can allow settlement proceeds in combination with government benefits to provide overall greater benefits to the payee
Both the Omnibus Budget Reconciliation Act of 1993 (OBRA 93) and The Foster Care Independence Act of 1999 allow many qualifying settlement recipients to have settlement proceeds placed in an SNT and remain eligible to receive Medicaid and SSI payments. Funds placed in the SNT may be used for a variety of purposes for the beneficiary that are not covered by the governmental programs.
Our team of specialists can assist with your client’s evaluation of whether an SNT is right for them. Our team includes trust officers, medical expense coordinators, portfolios investment officers affiliated with trust companies, life care specialists, contractors, and others.
In certain cases, where funds available to be placed in a special needs trusts are at levels that the costs for establishing a stand-alone trust are prohibitive, then alternative trust solutions need to be considered.
+ Typically offered by non-profit organizations
+ Pool deposits in a master trust fund to lower costs to be able to accept smaller size accounts, allowing more payees to enjoy the benefits of professional trust management services
+ Organizations may focus on certain states or regions of the country
Certain services are made available to all participants in the Pooled Trusts and certain other efficiencies may be achieved, all with the goal of making the optimal trust solution affordable and available for the beneficiary. Pooled Trusts are usually IRC 501(c)(3) tax-exempt charitable organizations and may be state specific in their scope.
Our Trust Solutions Platform has selected a variety of Pooled Trust providers from across the nation so that settling parties have an effective solution available for their needs.