Riverside Special Needs Lawyer

Special needs estate planning helps families provide for a loved one with a disability while considering the effect an inheritance may have on eligibility for means-tested public benefits. Careful planning can provide financial resources and ongoing support without unnecessarily disrupting benefits such as Supplemental Security Income (SSI) or Medi-Cal. A special needs plan should coordinate the beneficiary’s individual circumstances, available public benefits, family resources, and long-term care and support needs

An Overview of Special Needs Estate Planning

Special Needs Trust can allow assets to be managed for a person with a disability while helping preserve eligibility for means-tested public benefits such as Supplemental Security Income (SSI) and Medi-Cal. The trustee has discretion to use trust assets to supplement the beneficiary’s needs in accordance with the terms of the trust and applicable benefit rules.

There are two principal categories of Special Needs Trusts:

• Third-Party Special Needs Trust. A third-party Special Needs Trust is funded with assets belonging to someone other than the beneficiary, such as a parent, grandparent, or other family member. It may be created as a stand-alone trust or as a separate trust established under a parent’s or other person’s living trust or will. Properly drafted third-party trusts generally do not require the remaining trust assets to reimburse Medi-Cal at the beneficiary’s death.
• First-Party Special Needs Trust. A first-party Special Needs Trust is funded with assets belonging to the person with a disability, such as an inheritance received outright, proceeds from a personal injury settlement, or other assets owned by the beneficiary. Federal and state requirements apply to these trusts, and remaining assets may be subject to reimbursement claims for certain Medi-Cal benefits after the beneficiary’s death.

The appropriate type of trust depends upon whose assets are being placed in the trust, the beneficiary’s circumstances, and the public benefits involved. For families incorporating special needs planning into their own estate plans, a third-party Special Needs Trust is often used so that an inheritance can be managed for the beneficiary without being distributed outright.

 Online Resource Center

Families planning for a loved one with a disability often need information beyond estate planning. Public benefits, health care, housing, education, employment, and support services may all affect long-term planning. The following resources can provide additional information about programs and services available to individuals with disabilities and their families.

• Social Security Resources:
  Benefits for Children with Special Needs
  Social Security Benefits Eligibility Screening Tool

Planning for a Loved One with Special Needs

Special needs planning should be tailored to the beneficiary, the assets available for their benefit, and the public benefits and services they may rely upon. The Law Office of Maureen Lyons, PC helps California families incorporate special needs planning into their estate plans and create trusts designed to provide long-term support for loved ones with disabilities.