If an individual with a disability will receive funds in their name, particularly as a result of a personal injury or a malpractice settlement, a Payback Trust could be the solution. Assets in the Payback Trust are used for the sole benefit of the individual with a disability to improve his or her quality of life. If all the funds in the Payback Trust have not been spent by the time the individual with a disability passes away, the remaining funds are first used to “pay back” the state(s) for the cost of providing Medicaid services to the individual.
Following this payback, any remaining funds are distributed according to the trust document. Beneficiaries can leave these funds for family members, friends or charitable organizations.
List of PA attorneys familiar with special needs trusts.
This Payback Trust fact sheet can help you determine if a Payback Trust is right for you. It covers what a Payback Trust is, the advantages of a Payback Trust, and the requirements of a Payback Trust.
Achieva Family Trust offers three types of trusts: Pooled Trust, Payback Trust, and Third Party Trust. This fact sheet details the details and benefits of each type of trust.