Special Needs Trusts

Attorney Image By: James Filippi
special needs trust application with clipboard and notepad

If you’re the parent of someone with special needs, you know that your worries about your child extend far into the future. You may wonder what will happen to your child in the event of your death. Remove these worries with a special needs trust.

If you want to leave property or money to a loved one with special needs, you should not do so in a will or living trust. You must plan carefully and take advantage of the California special needs trust. A special needs trust in California will ensure that your child’s government benefits get preserved and they can live a fulfilling life.

To get started, contact a trust attorney in Rocklin, CA, at the Filippi Law Firm, P.C. today. We will ensure your special needs trust California exists so your loved one’s needs get met in the event of your death.

So, what’s a special needs trust, how does it differ from other estate plans, and why should you create one?

Special Needs Trust Rules

A special needs trust is an important part of an estate plan for parents with disabled children. It’s an irrevocable trust that gives disabled people the ability to maintain their eligibility for public assistance benefits. It doesn’t matter if they’re the recipients of assets that normally would make them ineligible.

If you don’t establish a special needs trust before you die, you could jeopardize your loved one’s ability to get essential government benefits. Furthermore, you can’t just set up any old trust with a few special needs provisions. This is unlikely to address the comprehensive issues that arise over the lifetime of someone with special needs.

Fortunately, a special needs trust not only preserves government benefits but also helps your loved ones live a satisfying life despite their disability. It makes sure your protective bubble for them persists, even when you’re not around.

Special needs trusts fall into two basic categories:

  1. First Party Funded: With this type of special needs trust, the individual who’s responsible for funding this trust is the one receiving government benefits. For example, this type of trust would allow a disabled with a lawsuit settlement to create a special needs trust for themselves to make sure they keep receiving their government benefits.

This type of trust must include state and federal provisions. For instance, it’s a requirement that one must give notice to the state when the trust gets terminated, or the trust beneficiary dies.

  1. Third Party Funded: This special needs trust is easier to set up than its counterpart. In addition, it doesn’t have a payback clause. It gets funded with assets belonging to someone other than the beneficiary.

How Long Does a Special Needs Trust Last?

A special needs trust lasts for as long as your loved one with disabilities is alive or until the funds are gone. An independent trustee will manage the trust for the benefit of your disabled family member. The government does not view the assets in trust as being the disabled child’s property. This makes it easy for your child to use them for their education, health, maintenance, and other forms of support, far beyond what Medi-Cal covers.

Why Should You Create a Special Needs Trust?

Anyone who’s ill or disabled receives support from the federal government in the form of Medi-Cal, California’s version of the federal Medicaid Program. They can also receive support from SSI or Supplemental Security Income. Social SSI helps disabled and elderly people with little or no income – it gives them cash to meet basic needs like shelter, food, and clothing.

But SSI and Medi-Cal put a limit on the number of financial resources a recipient can have. They do this to make sure they are helping those that are really in need. As of right now, the resource limit is $2,000 for individuals. So if you leave your disabled family member an inheritance over $2,000, they will no longer receive government benefits.

This is problematic in several scenarios:

How To Create a Special Needs Trust

In the past, many parents had to disinherit a disabled child from their estate plan so that it wouldn’t affect their government benefits. Thankfully, today there’s a better solution to this problem. A third-party funded special needs trust will guarantee your disabled family member can get their inheritance and still continue to receive their benefits.

It’s important to create a special needs trust before you pass away. Life is uncertain, and we never know for sure what lies around the corner. So don’t delay calling your trust attorney in Rocklin, CA, and creating a special needs trust until it’s too late.

How Much Does It Cost To Set Up a Special Needs Trust?

The answer to this varies. However, the average price to set up a special needs trust in California is around $1,500. A trust attorney in Rocklin, CA, can help you start.

Get Started on Your Special Needs Trust With Our Trust Attorney in Rocklin, CA

When you’re alive, there are enough problems plaguing your family member with special needs. So, it’s common to worry about what will happen to them when you pass away. A special needs trust ensures that someone is looking out for your family member with special needs at all times.

Contact an experienced Rocklin, CA, trust attorney as soon as possible to create a plan for the future. They will provide you with the counsel you need to create a trust for your family member’s special needs. Your Rocklin, CA, trust attorney gives you personal advice on the best way to make sure your family gets taken care of when you’re gone.

Satisfied Client Stories

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Anyone in need of a great law firm that does Living Trust/ Wills I highly recommend Filippi Law Firm in Rocklin.
My husband and I needed to have a new Trust done and we were very pleased with

Suzan Henshillwood
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I highly recommend Filippi law firm. Can’t say enough how much I appreciate all they did for me and my living trust. Jim is very helpful and relieved any doubts I had about trust. Very nice law firm and friendly. Thank you Jim for everything and Courtney as well.

Suzan Perfetto
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Very Professional service provided. Handled my trust with professional care and left us feeling very confident. Would recommend Filippi Law Firm to all my friends

Bret Rapozo
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Jim is a personable individual and all the people in the firm are friendly and professional. Creating my trust was painless and has taken a load off my mind.

Jil Voorhies
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We had an outstanding experience with all the Filippi associates we worked with. They were exceptionally professional and friendly. I would highly recommend their services.

John Wendt
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The Filippi Law Firm is very family oriented, professional in every way and quickly responded to any questions my family had. Their end product left nothing to be desired as it was an extremely well thought of and produced legal document. I highly recommend the firm to perform in any capacity of estate planning or administrative law.

Geraldine Dolan

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