Litigation

1. Allows tax-free distributions from such accounts for certain services provided to account beneficiaries, including education services, respite care, clothing, therapy, nutritional management, and funeral and burial expenses.
2. Allows tax credits for contributions of up to $2,000 made to a disability savings account (DSA) and for certain entities that maintain disability savings accounts.
3. Permits disability savings accounts to be disregarded in determining eligibility for Medicaid benefits and certain other means-tested federal programs.
4. Requires the Secretary of Health and Human Services to establish a program for marketing, outreach, and education related to disability savings accounts.

I believe that this would be  a positive development for the disabled and their families. While some would. feel this a threat to structured settlements. I don't feel the same way. At a value of $250,000 or less, and given the industry shift to a settlement planning, settlement consulting or recovery management model, the putative "DSA" should be embraced by industry participants as a new settlement financial planning tool. Moreover it will also  be especially helpful to those who have disabled family members where there has been no actionable tort recovery.

• There clearly is an opportunity for an astute annuity issuer or trust company to use its resources NOW to develop a product that could work as a stand alone or in tandem with a structured settlement annuity.
• This also is an opportunity for industry members to expand their skill sets and add value to client relationships.