As the fourth quarter approaches, attorneys and settlement consultants are working to move cases toward resolution before the end of the year. For cases involving a claimant with a potential Special Needs Trust, early coordination with the trust administrator can make the settlement process smoother and help avoid preventable complications later.

A Special Needs Trust is an important part of the settlement plan, but it should not be treated as a final step after the settlement terms have already been determined. Involving the appropriate trust professionals early can give the entire team a better understanding of how the trust will fit into the claimant's overall plan.

Start the Conversation Before Settlement

When a Special Needs Trust may be appropriate, there are several moving pieces to consider. The claimant's benefits, immediate financial needs, future expenses, trust type, and administration all need to work together.

For settlement consultants, identifying the potential need for a trust early creates an opportunity to coordinate with the claimant's attorney and other professionals before the settlement is finalized.

This can be particularly valuable when the settlement involves:

• A claimant who currently receives needs-based government benefits
• A claimant who may need to preserve eligibility for Medicaid or SSI
• A significant settlement that will require long-term financial planning
• A minor or individual who may require ongoing support
• A case where structured settlement payments and trust funding need to be coordinated

Avoiding Last-Minute Questions

Waiting until the settlement is nearly resolved to address trust administration can create unnecessary pressure. Questions about who will serve as trustee, how the trust will be funded, how distributions will be handled, and what information the trustee will need can all be addressed earlier in the process.

Early communication also gives the settlement consultant an opportunity to help the claimant and attorney understand how the trust fits into the broader settlement strategy. The goal is not to add another layer of complexity. It is to make sure the trust is considered alongside the other components of the settlement plan.

Think Beyond the Settlement Resolution

A successful settlement plan should account for what happens after the funds are received.

For a claimant who needs a Special Needs Trust, the relationship with the trustee may continue for many years. The trust will need to be administered, distributions will need to be reviewed, and the beneficiary's circumstances may change over time. Bringing the trust administrator into the conversation early helps establish a foundation for that long-term relationship before the settlement is finalized.

Make Trust Coordination Part of the Process

As settlement consultants and plaintiff attorneys head into the final months of the year, now is a good time to look at cases that may require additional planning. If a Special Needs Trust may be part of the solution, consider involving Legacy Enhancement Trust as early as possible. A proactive approach can help the settlement team anticipate questions, coordinate the funding strategy, and create a smoother experience for everyone involved. For more information, contact our team today.