What is a protected trust?

A protected trust is a form of estate planning used in California for those with disabilities. It is a special kind of trust that is designed to protect the assets of a beneficiary who has a disability and helps to prevent those assets from being taken away or used for purposes not intended. A protected trust is set up to provide financial protection to a disabled beneficiary and to ensure that any assets in the trust can only be used for their benefit. It also allows for safe and responsible management of the assets, with the trust’s assets going to the disabled person and not to creditors or other parties. The trust is often set up by the beneficiary’s parent or guardian, and typically includes instructions as to how it should be managed and distributed. This includes designating a trustee (as well as a backup trustee), how distributions will be made, and what expenses are allowed. The trust also outlines how the disabled person can access funds and what safeguards must be in place to ensure funds are only used for their benefit. In California, there are laws in place to protect these trusts and to ensure that they are managed correctly. If set up properly, the assets in the trust can be used to help the beneficiary with medical expenses, educational needs, transportation, and more. This can help the disabled person remain independent and secure while still receiving the financial support they need.

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What is a protected trust?

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