Special Needs Trust
If you would like to make provisions for the care of a disabled child or adult, you may want to consider setting up a special needs trust (also known as a supplemental needs trust or SNT). A special needs trust lets you leave property and other assets to your loved one without disqualifying them from certain government funded benefits. At the same time, it allows you to provide for their special needs and ensure that they are able to live the quality of life and have the quality of care that you can provide for them even after you are gone.
Government funded benefits over most nursing home expenses for those who qualify, but it is a needs based program, only available to those who fall below specific income and asset levels. Directly leaving someone $100,000 will immediately disqualify them from receiving these benefits, which can provide long-term support and services as well as crucial medical care to a disabled person. By leaving your provisions for your loved one in the name of an SNT, they can continue to receive Medicaid and SSI benefits while the SNT continues to fund their special needs.
As money cannot be distributed directly to the person with a disability, it is up to the trustee that you have appointed to administer and manage the funds to pay for your loved ones special needs, which can include:
- Transportation
- Rehabilitation
- Out-of-pocket medical care
- Vacations and other travel expenses
- Hobby or recreational activity items
- Personal care
- Entertainment expenses
- Other goods and services that are not covered by government funding
It is important that the documents for your SNT provide specific instructions for how you would like your appointed trustee to handle these funds to ensure that your disabled loved one is properly cared for and supported. Attorney Christopher P. Walker can help you draft up the necessary paperwork while making sure to include your specific instructions.
Types Special Needs Trust
1) Testamentary Special Needs Trusts: You can create a Testamentary SNT as part of your will. As with all components of a will, your Testamentary SNT will have to go through probate after you die.
2) Irrevocable Special Needs Trusts: This trust cannot be changed. Because it does not have to go through the probate process in court, the trustee you appoint has full discretion as to how the money will be spent toward your loved one's best interests. Although they are still required to follow your instructions, your trustee will not be operating under court supervision. An irrevocable SNT can continue to be funded after your death. An irrevocable SNT can be created upon distribution of the Grantor's Revocable Trust.
3) Community or Pool Trusts: You can fund your loved ones special needs through a trust that is set up and managed by a nonprofit organization.
There are many issues to consider when setting up a special needs trust for a loved one who is disabled, and at the Law Office of Christopher P. Walker, he will sit down with you to make sure that these matters are addressed. He has the experience in setting up every kind of special needs trust that you might need, and he will work with you to establish the right one for you and your loved one.
Many of his clients come from Orange County, as well as the Surrounding Counties in the Southern California Area. He encourages you to meet with him in person to explore your different estate planning options. Call Christopher today at 714.639.1990 or email him to set up an appointment. His office is conveniently located in Anaheim Hills, California. | 
