Get Ready to Plan for Settlement

You’ve taken the first step toward making informed planning decisions about your incoming settlement funds. Below are some helpful resources and information to review prior to using Pathway.

Start Here

The best place to start is to ask yourself these questions:

  • Could I benefit from guaranteed tax-free payments?
  • Do I want my settlement funds to last as long as possible?
  • Could I lose my government benefits when settlement arrives?

There are settlement planning strategies to make your settlement funds last, help you secure future income, and reach your financial goals. Check out the options below to learn more.

You will have the opportunity to explore your options further after you enter Pathway.

Make Your Settlement Last

You can turn your settlement funds into a guaranteed, tax-free stream of income. A structured settlement allows you to receive future tax-free payments in a schedule that’s customized by you.

How it Works

A settlement planning expert at Milestone will review your financial needs, goals, and government benefits income limitations (if applicable) with you, to create a tailored plan.

Consider this option if any of the below is true:

  • You would like to receive guaranteed payments,
  • Making your settlement funds last is important to you, or
  • You have monthly income limits based on means-tested benefits.

Structured settlements have an internal rate of return (IRR) which allows for the funds to grow while structured, free of any taxation.

For more info on a structured settlement, download our free PDF.

Medicaid, SSI, or Other Benefits?

If you have income based/means-tested benefits, such as (but not limited to):

  • Medicaid
  • SSI (Supplemental Security Income)
  • Section 8 Housing
  • SNAP (Supplemental Nutrition Assistance Program, often called Food Stamps)
  • Veterans Pension (often called Aid & Attendance)
  • Medicare Savings Programs

Receiving your settlement as a lump sum could impact your eligibility. A structured settlement, or one of the settlement planning options below, can help ensure there is no disruption in receipt of benefits.

Special Needs Trust

If you are considered disabled in accordance with the parameters outlined by Social Security, you might consider establishing an individual special needs trust or joining a pooled special needs trust.

A special needs trust can preserve your eligibility for needs-based government benefits, such as Medicaid or SSI, which have strict income limits. Funds from the trust would supplement your benefits by paying for things these programs do not cover.

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Spend Down

If income-based benefits are of concern but you have an immediate need for your settlement funds, you can take the full settlement amount as up-front cash. You can then spend these funds within the calendar month you receive them to avoid benefit disruption. You could even consider taking a portion of the settlement to spend on immediate needs and then structuring the remainder.

Click below for more info on how a spend down could work for you.

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Other Trust Options

There are many trust types available as settlement planning vehicles. Our experts can help you learn more about other trust options if you do not meet the requirements for a special needs trust or if a different variation is more suitable for your needs.

We're here when you need us.

Milestone is here to be your partner as you make informed financial decisions. You will soon be receiving an email from your law firm with more information about settlement planning and using Pathway. There is no fee or obligation to consult with our team of experts. We look forward to assisting you.