Chicago Trust Co. v. Department of Public Aid

We consider whether an Illinois Department of Public Aid (IDPA) lien on the proceeds of a personal injury settlement must be paid before those funds may be transferred to a supplemental needs trust, which is designed to provide for a disabled individual’s special needs without duplicating Medicaid services or destroying Medicaid eligibility. We conclude that the IDPA is first entitled to payment of the lien from the proceeds of the personal injury settlement, leaving the remainder available for transfer to the trust.

Dawn Calhoun, a minor, suffered brain damage during and shortly after birth.…