When an individual is receiving government benefits due to a disability, that person might be in need of a special needs trust.
When we say “benefits”, we mean things like Social Security Disability, or Medi-Cal. It’s important to remember that qualification for these programs is based on both assets and income. Therefore, if this individual receives a large inheritance, they stand to lose their Disability payments and their medical insurance.
Yet, you might want to provide for that person and leave them some form of assets when you pass away someday. This is especially true if you are concerned about providing for their care after you’re gone.
We can accomplish that goal without costing them their Disability or Medi-Cal benefits by establishing a Supplemental Needs Trust, or Special Needs Trust. These trusts are designed to ensure that the individual can still qualify for those benefits, without violating the rules on assets or income level.
If you have a family member who receives Disability payments or Medi-Cal benefits, we can help you establish a Special Needs Trust. This way, you can pass an inheritance to them and provide for their future living arrangements and care, without costing them the benefits they currently receive. Just give us a call and we will explain how to proceed.