SPECIAL NEEDS PLANNING
A trust is a legal document that provides for the control and distribution of assets held by a “trustee” for the benefit of another (the “beneficiary”). The assets in a trust may be money, stocks, bonds, real estate, business interests, or other possessions or assets. A trust should provide how assets are to be managed and distributed during the beneficiary’s life, and also how they are to be distributed after that person’s death.

A Special Needs Trust is a type of trust designed to protect the assets of a person with a disability. A “self-funded” Special Needs Trust must be created by a parent, grandparent, legal guardian or court to receive and hold assets (such as inheritance, lawsuit settlement, gifts) that belonged to the person with the disability, who is the beneficiary of the trust. The trust should direct the trustee to use the trust funds to supplement, but not replace, public benefits of the beneficiary. The Special Needs Trust must be managed by a trustee who is someone other than the beneficiary

The Need
Individuals with disabilities who receive public benefits would benefit from having funds in a trust used to maintain their quality of life. When an individual who receives public benefits also receives money, the public benefits may be jeopardized. This situation may arise when the individual receives a personal injury or divorce settlement, an inheritance, or other funds. Regardless of the source of the funds, once the individual has money in his or her own name, the public benefits may be at risk. To protect the public benefits, the excess funds can be placed in a Special Needs Trust. A Special Needs Trust is used to supplement, not replace, public benefits such as Supplemental Security Income (SSI) or Medicaid. The trust assets should be used to purchase things that public benefits do not provide, and the Trustee should be aware of the impact of any distribution on public benefits.

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Estate planning is about love for your family and keeping the peace after you are gone. It is also about protecting your assets, avoiding probate and reducing or eliminating estate taxes for your loved ones—which a properly drafted living trust can do. We draft a complete customized estate plan because we know every family is different and their needs are different—no one size fits all trusts! Every adult must have a Will, Healthcare Power of Attorney and Durable Power of Attorney, whether or not they have any assets, to avoid Conservatorship. Conservatorships can become very expensive and frustrating. Read about Conservatorship below.

​PROBATE: If a person with substantial assets dies without a Trust their estate goes through the Probate court before the assets are distributed to the beneficiaries (named in their Will or as per the state laws if there is no Will). The probate process and the mechanisms that transfer property from you to your appointed heirs upon your death, are challenging, intricate, and require attention. Let our professional experience serve you in restoring your piece of mind and protecting your family's assets by avoiding Probate or by helping your loved with the process.

MEDI-CAL TRUSTS: For Medi-Cal Trusts, pre planning is the key because there is a look back period. Medi-Cal Trusts help you to be eligible for the State's Medi-Cal benefits but avoid the State liens on your assets so you can leave your assets to your loved ones lien free. It is a good idea for the children to have their elderly parents have a Medi-Cal trust to save their inheritance.

SPECIAL NEEDS TRUSTS: As a parent of a child with special needs, it pays to protect your child in the event of your death. A well-planned Special Needs Trust (SNT) enables your child to cover his/her immediate needs in the event something unexpected happens to you. Special Needs Trusts are designed to supplement, not replace, the kind of basic support provided by government programs like Medical and Supplemental Security Income (SSI). Special Needs Trusts pay for comforts and luxuries -- "special needs" -- that could not be paid for by public assistance funds. Do not rely on a family member to take care of special needs beneficiary without a SNT. Majority of SNT litigations involve a family member abusing their powers and neglecting the SN beneficiary.

BUSINESS: Starting a Business? Corporation or LLC? Which one is a better choice? Buying a Business? Need a Buy-Sell agreement? Starting a Non-Profit organization? Want to create a Charitable Trust? Need a Contract or want to get one reviewed or have a contract dispute? Have a Contract dispute? We can help!

If you weren't here... Who would care for your child? Appoint a Guardian Today! You want the best for your children, even if you're not there. Don't leave your child's guardianship to chance. Let SNC Law Offices help you create an estate plan that gives your child the future and protection they deserve. If the parents are deceased and you need help to appoint yourself as the guardians of minors, we can help. Please contact us.

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​What You Need to Know
Even if a trust is properly established and funded, if the Trustee improperly spends the income or principal of the trust, the public benefits of the beneficiary could be reduced or eliminated. The trust must be used solely for the benefit of the person with a disability. A Trustee should be familiar with investment standards and the expectations for maintaining trust records. The Trustee should be aware of the tax ramifications of distributions made from the trust. A Special Needs Trustee should be familiar with the types of public benefits available, the actual benefits received by the trust beneficiary and the requirements of the public benefits programs, such as SSI and Medicaid. The Trustee also should be familiar with other types of assistance for which the beneficiary qualifies, such as SSDI and Medicare, so that the Trustee does not waste trust assets on items that would otherwise be payable by public benefits. The trust assets should be used only to purchase something that cannot be purchased with public benefits and which, if purchased, will not jeopardize the benefits of the beneficiary.

Where to Go For Help
Public benefit rules and regulations are very complex and trusts of this type involve tax issues. Therefore, you should be cautious when determining who will administer a trust of this type. Involving a competent professional is important to make sure that the various regulations are met. We have substantial experience and expertise concerning Special Needs Trusts.

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