Special Needs Trust Attorney in Santa Clarita, CA
Many government benefits that people with disabilities rely on — including SSI and Medi-Cal — are needs-based, meaning an inheritance or gift received directly can disqualify someone from continued eligibility. A special needs trust (SNT) holds assets for the person’s benefit — covering things like therapy, equipment, education, and quality-of-life expenses — without those assets counting against the resource limits for benefits eligibility, as long as the trust is properly structured.
Key Points
- Third-party SNTs are funded with someone else’s money (e.g., a parent’s estate plan) for the benefit of a person with a disability
- First-party (self-settled) SNTs hold the disabled person’s own assets, such as a personal injury settlement, and have additional legal requirements
- Distributions are typically made for supplemental needs, not basic support that benefits programs already cover
- Can be created during the grantor’s lifetime or through a will or living trust
Considerations
- The trust must be drafted to meet specific legal requirements — an informally written trust can fail to protect benefits eligibility
- First-party SNTs are subject to different rules than third-party trusts, including potential payback provisions to the state after the beneficiary’s death
- Coordinating with a benefits specialist alongside the attorney is often worthwhile for complex situations
California Law Note
Because eligibility rules for government benefits are detailed and change over time, a special needs trust should be reviewed periodically, not just drafted once and left unchanged for decades.
Related Questions
What happens at a free consultation?
We’ll talk through your family situation, your assets, and what you’re trying to accomplish — avoiding probate, providing for minor children, protecting a beneficiary, planning for incapacity, or something else. From there, we’ll explain which documents and strategies fit your situation and what the process and cost would look like. There’s no obligation to move forward afterward.
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