Settlement Funds Placed in Irrevocable Trusts Aren’t Assets
Facts: A disabled Section 8 resident is the beneficiary of an irrevocable Special Needs Trust. The resident has no control over the trust, and the trust itself earns little or no interest. The trust was funded entirely from a series of lump-sum settlements from a personal injury and property damage lawsuit, and was created by a court for the resident in 2010. The total amount of the settlement was estimated to be $330,000.