Special Needs Trust

Protect your loved one's future without risking essential benefits.

Caring for a child or adult with disabilities often comes with a constant question: What will happen when I am no longer able to help?

A Special Needs Trust allows you to set aside money or property for a loved one with disabilities without jeopardizing their eligibility for essential needs-based government benefits, such as SSI and Medi-Cal.

This type of planning is not about limiting support. It is about protecting dignity, stability, and opportunity over the long term.

How a Special Needs Trust Helps

A Special Needs Trust holds assets for the benefit of a person with a disability. The trust is managed by a trustee you choose, and it is designed so that trust funds are not counted as the beneficiary's own countable resources for certain public benefits.

This means your loved one can continue to receive SSI, Medi-Cal, and other essential benefits while the trust provides supplemental support for things those programs do not cover.

  • Extra therapies and medical care not covered by insurance
  • Education, tutoring, and job training programs
  • Transportation, including vehicle purchases and modifications
  • Technology, equipment, and accessibility modifications
  • Recreational activities, vacations, and quality of life experiences
  • Personal care attendants and companion services

This allows your loved one to receive both public benefits and private support, working together to provide the best possible quality of life.

Types of Special Needs Trusts

There are different types of Special Needs Trusts, and the right choice depends on where the money comes from and your family's specific situation.

Third Party Special Needs Trust

Funded with assets from parents, grandparents, or other family members as part of their own estate. This is the most common type for families doing planning ahead. When the beneficiary passes away, remaining funds can go to other family members.

First Party Special Needs Trust

Funded with the beneficiary's own money, such as an inheritance received outright, a personal injury settlement, or other funds. This type has a Medicaid payback requirement when the beneficiary passes away.

The rules governing these trusts are technical, and the consequences of getting them wrong can be serious. Careful planning is essential to ensure the trust achieves its intended purpose without jeopardizing benefits.

Who Might Benefit From a Special Needs Trust?

A poorly structured SNT can result in benefit disqualification, Medi-Cal recovery actions, or a trustee who doesn't understand distribution restrictions. Special needs trust planning is a specialized area that requires precise understanding of SSI and Medi-Cal eligibility rules.

Michelle Bosio works with families to ensure SNTs are structured correctly from the start, with clear distribution instructions and a well-informed trustee.

"The goal of a Special Needs Trust is simple: to give your loved one dignity, stability, and opportunity, without losing the safety net of essential public benefits."

Protect Your Loved One for the Long Term

Special Needs Trust planning does not have to be overwhelming. A guided conversation can help you understand what planning makes sense for your family and how it fits into your overall estate plan.

Estate planning for California families who worked too hard to leave anything to chance. Serving clients statewide.

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