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SSA and CMS Letters Re: Assignment of Payments to a
Supplemental Needs Trust:
SSA 2003 Letter: Structures and SNTs
SSA 2006 Letter: Structures and SNTs
March 13, 2006 CMS Letter
Pre-Analysis
This is among the letters of analysis sent to SSI and CMS setting forth the legal basis for which a structured settlement annuity can be paid into a special needs trust.
Analysis of SSI/CMS
This is a legal analysis of the SSI and CMS letters written to Jay J. Sangerman and addressing certain issues which may arise in the future.
These letters to and from SSI, CMS and Jay J. Sangerman, dated 2003 and 2006, are iin reference to our requests for assurance that periodic payments irrevocably assigned to special needs trusts do not create any attribution of income to an SSI and/or Medicaid recipient and that such payments may be made to a special needs trust as of age 65.
The cause for the need for assurance was that certain attorneys and Medicaid districts were claiming that periodic payments, even though irrevocably assigned to an SNT, create SSI/Medicaid eligibility problems.
Significantly, these letters demonstrate the need for care in the drafting of SNTs, orders creating the SNTs and settlement agreements. If the foregoing documents are improperly drafted, then there could be Medicaid and/or SSI eligibility problems.
As is demonstrated in the letters to SSI and CMS, there was no need for a change in the law or regulations, merely a clarification due to the misconstruction of the Medicaid and Supplemental Security rules pertaining to special needs trusts.
Transfer of Payee in Structured Settlement
IRS statement that the payee of a structured settlement which is transferred without consideration will not effect the favorable income tax treatment under IRC 104(a)(2), This technique, as explained in this attachment, if the life company is willing to issue such annuity, can be useful in settlement negotiations and estate tax planning.
New York State trial court anti-factoring decision.
New York State Court rules that structured settlement cannot be factored due to “no-assignment” provision in the settlement contract.
A Cautionary Note Pertaining to Retention of Supplemental Security Benefits
In the drafting of settlement agreements and court orders, as well as in the administration of special needs trusts, it is necessary to consider the SSI rules so that the payments are not considered available income or available resources to the beneficiary.
SSI and Supplemental Needs Trusts.
Supplemental Needs Trusts and SSI POMs.
Special Needs Trusts as a useful tool in the settlement of cases.
This is a detailed outline for professionals.
Services Provided by Jay J. Sangerman, PLLC
Medicare Set-Aside Trusts
Supplemental Needs Trust for Tort Claims
Supplemental Needs Trusts for the Settlement of Tort Claims, Estate Planning and Protection of Inheritances
Cano and Drafting of the Supplemental Needs Trusts: July 12, 2004 Decision by the Hon. Bertram Katz
Supplemental Needs Trusts: The Second Decade. NYLJ, July 24, 2004.
Supplemental Needs Trusts: A Trap for the Unwarry Plaintiff Attorney
Placement of Tort Awards
Structured Settlement Issues
Social Security Information and Personal Injury Settlements
Negotiating and Settling the Medicaid Lien
First Party Supplemental Needs Trusts - An Article from the New York Law Journal
Current Developments In Special Needs Trusts
Structuring of Attorney Fees
Medicaid Liens and Recoveries. Do Liens Need to be Settled Prior to the Establishment of the Supplemental Needs
Medicaid Liens: When, and under what circumstances, do they need to be repaid?
The attached outline explains the rules and procedures for considering the effect of Medicaid liens.
Attorney's liability to reimburse Medicare for payments made on client's behalf
See Resources for Personal Injury Attorneys.
Jay J. Sangerman, PLLC is not associated with “Special Needs Alliance.”
JAY J. SANGERMAN, ESQ.
Jay J. Sangerman, PLLC
60 East 42nd Street - Suite 2218
New York, New York 10165
Telephone (212) 922-0711
Facsimile (212) 922-0709
jsangerman@sangerman.com
4115 NW 60th Circle
Boca Raton, Florida 33496
561-989-9095
Jay J. Sangerman & Associates
Lanidex Executive Center
100 Misty Lane
Parsippany, New Jersey 07054
(973) 739-9055