Special Needs Trust Estate Planning in California: Why It's Important
As a parent or caregiver of a loved one with special needs, you want to ensure that their future is secure and that they have access to the resources they need to live a comfortable life. One way to do this is through special needs trust estate planning in California. A special needs trust is a legal arrangement that allows you to provide for the ongoing care and support of your loved one with special needs, while also preserving their eligibility for government benefits such as Medi-Cal and Supplemental Security Income (SSI).
In this blog post, we will discuss the reasons why special needs trust estate planning is important in California, including the benefits of a special needs trust and how it can be used to maintain beneficiary eligibility for government assistance and provide for necessary and adequate care. We will also provide information on how to set up a special needs trust in California, and what to consider when choosing an attorney to assist you with the process.
Key Takeaways
Use special needs trusts to maintain beneficiary eligibility for government assistance
Special needs planning can be complex, so it’s important to hire an attorney
REASONS TO CONSIDER SPECIAL NEEDS TRUST ESTATE PLANNING IN CALIFORNIA
Maintain Beneficiary Eligibility for Governmental Assistance
One of the most important benefits of a special needs trust is that it allows you to provide for the ongoing care and support of your loved one with special needs, while also preserving their eligibility for government benefits such as Medi-Cal and SSI. These programs have strict income and asset limits, and if your loved one receives assets or income that exceeds those limits, they may lose their eligibility for benefits. A special needs trust allows you to provide for your loved one's needs, without affecting their eligibility for government benefits.
Provide for Necessary and Adequate Care
Another benefit of a special needs trust is that it allows you to provide for your loved one's necessary and adequate care. This can include things like medical expenses, therapy and rehabilitation services, adaptive equipment, and more. A special needs trust can also be used to provide for your loved one's quality of life, such as by paying for recreational activities, travel, or other expenses that will enhance their overall well-being.
Protect Assets for the Future
A special needs trust also allows you to protect assets for the future, such as by keeping them out of probate and preserving them for your loved one's use in the event of your passing. This can be especially important if your loved one is likely to outlive you, as it ensures that they will have access to the resources they need to continue living a comfortable life.
For more information on trusts, you can explore our estate planning practice and Resources.
HOW TO SET UP A SPECIAL NEEDS TRUST IN CALIFORNIA
Setting up a special needs trust in California can be a complex process, and it is important to work with an experienced attorney who can guide you through the process and help you make informed decisions. Some of the things to consider when choosing an attorney include their experience with special needs trusts, their understanding of California law, and their ability to communicate clearly and effectively with you.
When setting up a special needs trust in California, you will need to consider things like who will be the trustee and who will manage the trust, what assets will be placed in the trust, and how the trust will be funded. You will also need to consider how the trust will be administered, and what provisions will be made for your loved one's care and support in the event of your passing.
CONCLUSION
Special needs trust estate planning in California is an important way to ensure that your loved one with special needs has access to the resources they need to live a comfortable life. A special needs trust can provide for your loved one's ongoing care and support, while also preserving their eligibility for government benefits and protecting assets for the future. As you can see, there is a lot to consider. Check our Resources for further discussion in this regard or schedule a strategy session today. Keep planning smarter.
Matthew Schlau is a co-founding principal of Schlau|Rogers and an estate and business planning lawyer practicing in Orange, San Diego, Los Angeles and Riverside counties. He is a husband, father, blogger, crossfitter, and really good at helping people achieve their goals.
At Schlau|Rogers, we do more than just estate and business planning, probate and trust administration. Our objective is to provide individually-tailored plans that allow you the opportunity to reach your goals, all while minimizing headaches and risk, and maximizing peace of mind.
On our blog, you'll find useful information about estate and business planning, probate and trust administration, as well as some tidbits on personal finance, taxes, and anything else we think will help minimize headaches, worry and risk, all while maximizing peace of mind.
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