by John S. Kitchen, JD, LLM
A Medicare set-aside trust is a type of special needs trust which is used when there is a settlement in a personal injuries case. Medicare set-aside trusts hold a part of the settlement to pay for future medical costs in accordance with federal law. No fees or costs are paid out of the trust. The fees and costs are paid out of the companion special needs trust funded with other settlement funds. For additional information on Medicare Set-Aside Trusts see 42 USC 1395y(b)(8) and the CMS user guide.