Two hands holding. Securing Your Family’s Future. The Role of Special Needs Trusts in Camp Lejeune Settlements. The TGQ Law Firm.

Protecting Your Family’s Financial Future

Those living and working at Marine Corps bases naturally expect clean drinking water, but for those stationed at Camp Lejeune from 1953 to 1987, their water was anything but. During this period, more than one million people may have sipped on water contaminated with cancer-causing solvents.

If you’re one of them and received a government settlement, you may wonder how to preserve those funds. Learn how special needs trusts in Camp Lejeune settlements work and how an estate planning attorney in Ann Arbor, MI, can help below.

Estate Planning

Navigating the Complexities of Camp Lejeune Settlements

In 2022, the U.S. government created the Camp Lejeune Justice Act to compensate those harmed by contaminated drinking water at this military base. The law allows injured victims to sue for their damages in court. So far, the government has made settlement offers on 114 claims. Qualifying victims include anyone who worked or lived at Camp Lejeune for at least 30 days between August 1, 1953, and December 31, 1987. This includes those affected prior to birth (in utero).

If you’ve received a settlement and have special needs (whether due to Camp Lejeune or any other cause), those funds can fundamentally change the financial landscape for you and your family.

Empowering Financial Security With Special Needs Trusts 

Suppose you’ve received a settlement from the Camp Lejeune debacle. You apply for Medicaid to help you cover medical expenses or pay for long-term care, but it denies you because your settlement puts you over the asset limit.

This is why it’s wise to consider special needs trusts in Camp Lejeune settlements before applying for Medicaid. By doing so, you’ll protect your money for your family while still qualifying for assistance.

You can choose between a first-party or third-party special needs trust (SNT). First-party trusts are funded with assets from a disabled person who is also a beneficiary of the trust. Third-party trusts, on the other hand, are funded with assets from someone other than the beneficiary.

One drawback of first-party trusts is that the trust must repay Medicaid when the beneficiary dies. With a third-party trust, the creator does not have to pay back Medicaid.

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Maximizing Settlement Funds Through Strategic Trust Planning

Imagine that your child was born with special needs due to your exposure to contaminated water at Camp Lejeune. Doctors say your child won’t ever be able to care for themselves. How will you ensure that they’re taken care of when you’re gone?

This is precisely what special needs trusts are designed to do. With a trust, you can set aside money to pay for your child’s care long after your passing. You can even create terms that spell out what the trust manager may do with the funds. For example, maybe they can only use the money to pay for your child’s education and an in-home care aide.

Creating a Special Needs Trust That Works: A Step-by-Step Guide  

If you’d like to set up a special needs trust for yourself or someone else, here’s how to go about it the right way:

  1. Determine what your (or the beneficiary’s) long-term care needs will be.
  2. Decide whether you’d like a first-party or third-party trust. Remember, third-party trusts can’t be funded with your own money if you’re the beneficiary.
  3. Choose a trustee. This person or entity will manage and disburse the trust funds according to your terms.
  4. Create your trust document. The wording of your trust document is important, so you’ll want an estate planning attorney to help.
  5. Fund the trust with cash, investments, or a life insurance policy that will pay out when the holder passes on.
  6. Invest the trust funds to grow your money.
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Leveraging Local Expertise: Estate Planning Attorneys in Ann Arbor, MI 

Special needs trusts in Camp Lejeune settlements can help safeguard the future of yourself or someone you love. Setting up a trust, however, isn’t for the faint of heart. You’ll need the right type of trust, a reliable trustee, and an ironclad trust document that spells out how to use the funds.

If you need guidance, call The TGQ Law Firm at (734) 707-3232.

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