When you are responsible for a loved one with special needs, you may be concerned about the future. A Culver City special needs trusts lawyer can help address the unique circumstances and challenges you might face when arranging for care and financial security for your family. Cox Law Group, Inc., is here to compassionately guide you through the process of safeguarding your loved one’s interests. You deserve the peace of mind a special needs trust can provide.
A special needs trust is a legal arrangement that allocates assets to establish care and financial security to support a loved one with a disability, without compromising any government benefits they may receive, including SSI or Medi-Cal. If you are the parent or guardian of a person with a disability, a special needs trust can help guarantee that your loved one’s medical and financial needs will be met in the event of your death.
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When you are the parent or guardian of a child or a disabled adult who may not be able to financially support themselves, a special needs trust provides security. These trusts must comply with state and federal laws, and laws concerning benefit and asset allocation vary from state to state. Hire a special needs trust lawyer with experience and knowledge of California estate law when creating a special needs trust.
Without a special needs trust, any assets you allocate to your beneficiary could potentially disrupt their benefits. Many benefit programs, such as SSI and Medi-Cal, are means-tested, which means they have very low asset thresholds to maintain eligibility. Someone receiving SSI, for example, can only have $2,000 per month in countable resources to remain eligible for benefits. Special needs trust laws can safeguard eligibility for state and federal benefits.
Many people believe that a will guarantees that their wishes will be carried out after death. But that’s seldom the case. A will is only one part of an effective estate plan, and when you are the parent or guardian of someone with special needs, the stakes are high. Costly and time-consuming probate cases at the Superior Court of Los Angeles County should be avoided when planning for your disabled loved one’s future.
There are 1.4 million disabled children living in the state of California, and over 7.6 million disabled adults. With restrictive eligibility requirements for government-funded programs impacting disabled people nationwide, a special needs trust, paired with an estate planning package, helps to provide the security you seek for the ones you care for most.
When a grantor, usually the parent or guardian of the beneficiary, establishes the special needs trust, they contribute assets to the fund and appoint a trustee to manage the trust. The trustee can allocate distributions to the beneficiary for medical and dental care, transportation, or any other purpose approved by the laws governing trusts. The trustee should be someone the grantor trusts to carry out the best interests of the beneficiary in the event of the grantor’s death.
A successor trustee should also be named to take over as trustee if the original trustee dies or is unable to fulfill their duty. A remainder beneficiary should also be declared, just in case the original beneficiary passes away before the trust is depleted. These decisions are very important. A qualified Culver City special needs trust attorney can advise you on the right course of action to take when establishing a trust.
Benefits of Establishing a Special Needs Trust:
Cox Law Group, Inc., can discuss the benefits of establishing a special needs trust and help you decide if you should make a special needs trust part of your estate plan. With three decades of experience in estate planning and special needs trusts, we are equipped with the knowledge to help ensure your loved one’s future is in good hands.
Special needs trusts do carry some restrictions. Funds must be allocated for expenses that won’t jeopardize the beneficiary’s eligibility for benefits such as Medi-Cal, SNAP, and SSI. Funds from a special needs trust cannot be used to pay for basic needs, such as clothing, food, or gifts. Funds can be used for educational expenses, transportation, therapy, personal care expenses, medical treatment not covered by Medi-Cal, and housing and utilities.
There are strict rules governing special needs trusts, including requirements for documentation to prevent fraud and misuse of funds, increased government scrutiny, and reporting standards to help uphold compliance. However, despite the increased regulations, a special needs trust is an important tool in your estate plan to help protect your disabled loved one.
An ABLE (Achieving a Better Life Experience) account is a tax-deferred account designed to help employed adults with a disability that began before they turned 26 years of age. They can benefit families caring for children or adults with disabilities by helping pay for things like a vehicle for transportation of the child. Funds contributed to ABLE accounts can help supplement a special needs trust without jeopardizing eligibility for government benefits.
Trustees are almost always guaranteed compensation for their time and the responsibility of managing a special needs trust. This compensation usually takes the form of an hourly rate for services performed, or a flat fee based on a percentage of the trust’s assets. How a trustee is paid depends on the nature of the trust and who is serving as the trustee.
At Cox Law Group, Inc., we are dedicated to honest, ethical estate planning in Culver City. Our legal team has extensive experience, certifications, and our founding attorney, Cynthia R. Cox, is a member of the Academy of Special Needs Planners. We can also communicate in Spanish. Our team can answer all your questions about special needs trusts and help you build a disability plan that addresses your unique needs. Contact us today to schedule a consultation.
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