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Structuring a Settlement to Fund a Special Needs Trust May Not Work to Block ERISA Plan's Recovery
Benefits Bryan Cave Link to more items from this source
June 28, 2013

"[The participant] entered into a settlement with a third party for $294,440, but did not reimburse the ERISA group health plan for the $50,076 in medical expenses it paid.... [T]he settlement required the defendant to purchase an annuity from an unrelated insurer.... [The participant's] attorney indicated that the settlement was specifically structured to avoid any equitable lien claimed by the ERISA group health plan.... [T]he plan sued the trustee of the plan participant's special needs trust.... [T]he Fifth Circuit concluded that it was appropriate equitable relief under ERISA to impose a constructive trust on ... the proceeds from the annuity as they are paid into the special needs trust." [ACS Recovery Services, Inc. v. Griffin, No. 11-40446 (5th Cir. May 7, 2013)]  MORE >>

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