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Medical malpractice settlements often follow serious, lasting harm — from surgical errors, misdiagnosis, medication mistakes, or birth injuries.
Because the resulting medical needs can be lifelong, the settlement should be protected and managed to last, not spent down quickly.
A trust preserves Medicaid and SSI eligibility while funding the ongoing care and support the injury requires.
Medical malpractice — a surgical error, a missed or wrong diagnosis, a medication mistake — can leave a person with permanent injuries and ongoing medical needs. The settlement is meant to account for that future, which means it needs to be managed across a long horizon rather than treated as a windfall.
A settlement trust gives that money structure and protection: professional management, a controlled distribution process, and the legal protections that keep the funds available for the care they are meant to provide.
Many malpractice victims rely on Medicaid and SSI for ongoing care. As with other injury settlements, a direct payment can disqualify them by exceeding the $2,000 asset limits. A properly structured trust keeps eligibility intact, letting benefits and the trust work together — benefits covering what they cover, the trust covering the rest.
Educational information — not legal or financial advice
This article explains general concepts and reflects figures current as of 2026, which change periodically. It is not a substitute for advice from a licensed attorney or financial professional about your specific situation. Trust and benefits rules vary by state and by case. Always confirm details with a qualified professional before acting.
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