What is a special needs trust?

A special needs trust is a type of trust that is designed to provide benefits to individuals with disabilities without disrupting their eligibility for public assistance programs. In California, a special needs trust is typically set up for individuals with physical or mental disabilities who are under the age of 65. A special needs trust is an important legal tool for families of individuals with special needs, because it allows those individuals to receive benefits from the trust while still qualifying for public assistance programs like Supplemental Security Income (SSI) and Medicaid. Without a special needs trust, individuals with disabilities may not be eligible to receive public assistance because they would have to spend down their assets in order to qualify. The trust also helps protect the beneficiary’s assets from being used to pay for medical expenses or other costs which may become a hardship for the family. It allows the beneficiary to retain ownership of the assets, while preventing them from being seized by creditors or used for any other purpose besides the needs of the beneficiary. The trust can also be used to provide benefits for the beneficiary’s education, medical care, and quality of life that are not covered by public assistance programs. The trust can also be used to provide financial support to a guardian or trustee to help manage the beneficiary’s finances. A special needs trust can be an invaluable tool for families of individuals with special needs in California. It allows those individuals to maintain their eligibility for public assistance while providing them with the benefits and quality of life they need.

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