Have you been told that your son or daughter, who has a disability, is not allowed to inherit money? It’s true, an inheritance will interrupt his or her SSI and Medicaid. Therefore, someone who is disabled cannot inherit more than $2,000 because it will interrupt his or her government benefits.
There is an easy way around this problem. You can leave money for your son or daughter, without interfering with the public benefits by creating a Special Needs Trust.
A Special Needs Trust is a unique type of trust designed to hold property titles for the benefit of a child or adult with a disability, without affecting their eligibility for public benefits. This trust is instrumental in addressing the needs of an individual with a disability by supplementing benefits obtained from governmental assistance programs like SSI and Medi-Cal. It allows the trust to manage various assets, including cash, real property, and personal property, and can serve as the beneficiary for life insurance policies.
If you set up a Special Needs Trust, the trustee can buy many of the things your son or daughter will need.
The trust can pay for an advocate to make sure your loved one gets the services he or she needs when you aren’t there to help out. The trust can pay for vacations, social events, and sporting goods.
If Medicaid won’t pay for certain medical care or treatments, the trust can step in and provide those. Occasionally, people with mental disabilities are targeted by the police and wrongly accused of crimes; if your son or daughter has a special needs trust, the trust can pay for a good legal defense.
The trust can buy a house for your child to live in, or it can pay for an advocate to insist that your loved one be granted services by the government, as required by law.
For people who are not especially wealthy, a special needs trust is still a good idea. It can be funded with a life insurance policy.
Ensuring the plan encompasses all aspects of the individual’s life involves identifying their medical, educational, and daily living needs.
Preparing wills, trusts, and power of attorney provides a legal framework for the plan.
Creating a plan for long-term care and support ensures the availability of essential resources for the individual’s future.
Understanding and applying for relevant programs maintains eligibility for essential state and federal benefits.
In California, Special Needs Planning plays a crucial role, given the state’s specific legal intricacies. Recognizing the distinct challenges encountered by families with special needs members, California has established a supportive framework aimed at inclusion and protection. We can help by:
Setting up a special needs trust
Navigating government benefits such as Medicaid and Social Security
Establishing guardianships or conservatorships when needed
Familiarity with this framework is essential for California families, ensuring their loved ones receive necessary care and resources without compromising eligibility for vital state and federal benefits.
