Special Needs Planning

Special Needs Trusts

One “Catch-22” situation that typically arises in estate planning for people with special needs is how to leave enough money to pay for the massive amount of care and support a loved one typically needs throughout their lifetime, while not disqualifying them from government benefits like Medi-Cal and Supplemental Social Security Income.

If you leave a large lump sum of money directly to a person with special needs, immediately there are concerns about how that might impact governmental assistance and whether your loved one is capable of managing finances on their own.

Fortunately, we have an estate planning tool called a “special needs trust” designed to provide supplemental financial resources for the person with physical or developmental disabilities without affecting their eligibility for public healthcare and income assistance benefits.

This said, the rules for such trusts are quite complicated.

For instance, funds from a supplemental needs trust cannot be distributed directly to the affected beneficiary and must be disbursed to a third party who is responsible for providing the goods and services your loved one will need to maintain a secure and comfortable lifestyle.

Even once you have established a special needs trust, the care and attention we pay to your loved one with special needs is not over. We know that your loved one’s financial and emotional requirements will change over time, sometimes dramatically. And the laws governing public benefits change over time.

Given this, it is vital to work with an attorney experienced in special needs planning who can create a comprehensive special needs trust that is both properly structured and appropriate for your loved one’s specific situation.

We will help you develop a sustainable living plan for your loved one with special needs that will provide them with the resources they need to live a full life while preserving their access to government benefits.