Do I need a Special Needs Trust?

A person with a disability, physical or mental may have, held in trust for their benefit an unlimited amount of assets. Utilizing a correctly drafted Special Needs Trust, also referred to as a Supplemental Needs Trust the trust assets are not considered countable assets for qualification of government benefits such as SSI and Medi-Cal. Medi-Cal is the California version of Medicaid. The Special Needs Trust provides for extra care in addition to that which the government provides. A popular situation is when a family owns a home and has savings. The parents pass away and the children get the inheritance. If a child has a disability such as Autism, Downs Syndrome, blind, deaf, etc., the disabled child will lose the SSI income upon inheriting their share. If the family set up a Special Needs Trust previous to the parents passing, then the disabled child can keep the SSI income and the inheritance. The Special Needs Trust is a legal document that both keeps the SSI benefits in place and offers enjoyment to the beneficiary allowing use of additional funds from the family. Trust can be used for home purchase or upgrades, vacations and entertainment. The law mentions a Supplemental Needs Trust may be used for "supplemental and extra care over and above what the government provides." Another good use for a Special Needs Trust is before qualifying for SSI it is important to setup and fund the Special Needs Trust to guarantee qualifying. Without the Special Needs Trust one may be rejected and not qualify for SSI because of existing funds over the allowed amount. Typically when parents own a home and have a disabled child they should have an attorney prepare a Special Needs Trust. This can be done when the child is any age however the sooner the better. It is important that the Special Needs Trust is in place so future benefits may be acquired and are not jeopardized or lost.