Creating a Special Needs Trust in California

When individuals create an estate plan to prepare for their future and the future of their loved ones, they consider many options. In addition to planning for what happens to assets, individuals often think about what will happen to loved ones that are dependent on them. Those who have loved ones that need extra assistance often face other challenges when preparing a future for them. Certain questions arise such as who will take care of their loved one, how will they receive public benefits, and if they will be able to provide the loved one with extra money to sustain a standard of living. It is because of this that special needs trusts exist to help family members to create a plan for those who cannot fully take care of themselves.

Types of Special Needs Trusts

In the state of California, there are three main types of special needs trusts that are available for individuals:

  • First Party Special Needs Trusts: This type of trust can only be created by a parent, guardian, or legal guardian. It is funded with the beneficiary’s own funds. This trust is required to be irrevocable and the beneficiary has to be under the age of 65
  • Third Party Special Needs Trusts: This type of trust can be created by someone else for the beneficiary. They can be created during an individual’s lifetime or in the event of a death. Often times, these rusts are funded by life insurance. Other relatives such as grandparents, siblings, aunts, uncles, and friends are able to make gifts to this type of trust
  • Pooled Special Needs Trusts: This type of trust takes assets from several members and puts them together in a “pool” to create a larger investment fund for the beneficiary. A pooled trust requires the establishment of a disability and the need for the trust to be developed through a nonprofit organization

Why Create a Special Needs Trust?

Creating a special needs trust allows an individual to benefit from other resources without being discontinued from receiving support from other government programs and public benefits. This can include Supplemental Security Income (SSI) and Medicaid (Medi-Cal). In addition to this, there are certain benefits that come with creating a special needs trust for families. This may include:

  • Protected government benefits
  • Provide supplemental funds
  • Avoid probate
  • Provide for funeral arrangements
  • In-Home Support Services
  • HUD housing assistance

Contact our Firm

If you or someone you know is considering creating a special needs trust, contact the Law Offices of Yacoba Ann Feldmantoday.

Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Office of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most.Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.