A Trust Funded by the Disabled Individual
A Self-Settled Trust account is one that is funded with the disabled individual’s own resources.
Typically, this is where a disabled individual’s assets exceed the financial resources test for government benefit programs.
Common sources of funding for a Self-Settled Trust include: Personal Injury Settlements, Medical Malpractice Settlements, Other Law Suits, Court Orders, Structured Settlement or Lump Sum Payments, Inheritance, Life Insurance Payouts, Retroactive Benefit Payments or Other Earnings.
Beneficiaries have the option of leaving any funds which remain in their pooled trust account upon their death to the trust in order to support other individuals with disabilities. Any funds which are not retained by the trust must be used to reimburse the State for the cost of medical assistance provided during the beneficiary’s lifetime.