San Jose Special Needs Planning Attorneys
Quick Answer
Special needs planning helps families provide financial support for a disabled loved one while protecting eligibility for needs-based public benefits. A properly structured special needs trust can improve quality of life without replacing essential benefits.
Key Takeaways
- Special needs trusts can pay for supplemental needs while preserving benefit eligibility.
- Trustee selection is critical because administration must follow strict rules.
- Planning should coordinate inheritance, insurance, caregiving, and long-term support.
Common Questions Answered on This Page
- What is a special needs trust?
- Can inheritance affect SSI or Medi-Cal benefits?
- Who should serve as trustee of a special needs trust?
- What can a special needs trust pay for?
Service area: San Jose, Santa Clara County, Milpitas, Fremont, Sunnyvale, Santa Clara, Cupertino, Campbell, Los Gatos, and nearby Bay Area communities.
Next step: Contact Trust Law Legacy Group to discuss special needs trust planning for your loved one.
Finding Ways To Financially Protect Your Disabled Loved Ones
If you have a child or other family member with disabilities, you might worry about how they’ll pay for their necessities when you’re no longer here to care for them. Fortunately, you can plan ahead for their future by sitting down with a skilled attorney to learn what special needs planning tools are available. At Trust Law Legacy Group, APC, we regularly help families determine which elements of estate plans would be right for them and their loved ones, and we can do the same for you. Contact us today if you’re ready to discuss how to provide for your special needs child when creating your estate plan.What Is Special Needs Planning?
Special needs planning is a type of estate planning specifically designed to help you provide for loved ones who have disabilities. The goal of this type of estate planning is to ensure that disabled individuals can continue to receive the care and support they need throughout their lives without jeopardizing their eligibility for government benefits. After all, most government programs that disabled individuals rely on, such as Medi-Cal and Supplemental Security Income (SSI), have strict income guidelines. This means if your child suddenly inherits a significant amount of money from your estate, they could be over the income limit and therefore ineligible for the benefits they need for healthcare and more. Special needs planning aims to prevent this from happening, ensuring you can leave your child money while allowing them to remain eligible for government programs. The most popular special needs estate planning option is the creation of a special needs trust, which our experienced lawyers can help you with. We can also help you set up powers of attorney, guardianships, and other estate planning tools while ensuring you’re aware of the public assistance programs your child is eligible for. Contact our San Jose law firm today to learn more.What Are the Types of Special Needs Trusts in California?
A special needs trust is a legal entity that holds assets for the benefit of an individual with special needs. Since the trust is legally considered the owner of the assets within it, you can pass on your assets to your children without putting them over the income limit for public benefits. As a result, the trust assets won’t show up when the government tries to determine eligibility for certain programs. Once the trust is set up, it’s managed by a trustee. This person is responsible for using the trust assets to provide for the individual’s needs in a way that doesn’t interfere with their eligibility for the programs they need. The main types of special needs trusts you can choose from include:- Third-party trust: This kind of trust is funded by someone other than the beneficiary, such as their parents, siblings, or grandparents. It’s the most common type of special needs trust for families to use.
- First-party trust: This is funded by the beneficiary, usually with money from an inheritance or legal settlement. The downside of this trust is that when the disabled individual passes away, any money left in the trust will be sent to the government to reimburse them for public benefits.
How Can Your Loved One Use the Money in Their California Special Needs Trust?
One of the questions clients often have about special needs trusts involves how their children can spend the money in them. The good news is that they can spend it on a wide range of expenses related to their care throughout their lifetime. This can include medical expenses, housing, education, and just about anything else they need to improve their quality of life. Some specific examples of such expenses include:- Use of public transportation
- Buying and maintaining a car
- Tutoring and other educational needs
- Buying or remodeling a house
- Hobbies or athletic activities
- Electronics and furniture
- Concerts, movies, sporting events, and other entertainment
- Vacations
- Unique dietary needs
- Any medical costs not covered by the government
- Personal care attendants