Special Needs Trusts
Providing for a loved one with a disability requires careful legal planning. A special needs trust allows you to leave assets for a family member with special needs without disqualifying them from essential government benefits like Medi-Cal or SSI. NewPoint Law Group helps Roseville families structure these trusts correctly under California law.
Special Needs Trusts | Estate Planning Attorneys in Roseville, CA
What Is a Special Needs Trust?
A special needs trust (SNT) also called a supplemental needs trust is designed to hold assets for the benefit of a person with a physical or mental disability without disqualifying them from need-based government programs such as Supplemental Security Income (SSI) and Medi-Cal.
Leaving assets directly to a beneficiary who receives these benefits can disrupt or end their eligibility. A properly drafted SNT allows those assets to supplement not replace government benefits, funding things like education, therapy, recreation, and personal care that public programs do not cover.
Types of Special Needs Trusts in California
Third-Party Special Needs Trust: Funded with assets belonging to someone other than the beneficiary typically a parent, grandparent, or other family member. This is the most common type used in estate planning. Remaining funds at the beneficiary's death pass to other heirs and are not subject to Medi-Cal reimbursement.
First-Party (Self-Settled) Special Needs Trust: Funded with assets belonging to the person with disabilities, often from a personal injury settlement or inheritance received directly. California law requires a Medi-Cal payback provision upon the beneficiary's death.
Pooled Special Needs Trust: Managed by a nonprofit organization that pools assets from multiple beneficiaries for investment while maintaining separate accounts for each individual.
Why Careful Drafting Matters
A special needs trust must be drafted precisely. Errors in language can make distributions countable as income, jeopardizing government benefits. The trustee must also understand the rules governing permissible distributions. Our attorneys work with families to create trusts that are both legally compliant and practical to administer over the long term.
Integrating an SNT Into Your Overall Estate Plan
For parents and grandparents planning for a child or grandchild with disabilities, a special needs trust should coordinate with your will, living trust, life insurance beneficiary designations, and retirement account designations. We help you build a cohesive plan that protects your loved one across every aspect of your estate.