A trust can provide your client with some of the same advantages of structured settlements without the flexibility concerns or liquidity issues. There are several different trusts that may need to be implemented at the end of a personal injury case. One such trust is called a special needs trust or pooled trust which is necessary to preserve SSI/Medicaid eligibility.
Another trust is called a Medicare Set Aside Trust. This trust or arrangement preserves Medicare eligibility for personal injury victims that settle their future medical claims.
Settlement Preservation Trusts or investment trusts are another option when there is a need for spendthrift protection, liquidity and money management for a personal injury victim. The aforementioned trusts oftentimes are used in conjunction with structured settlement annuities combining a tax free fixed investment with professional money management by a corporate trustee. It is important to understand these different types of trusts and when it is appropriate to implement one.