A Special Needs Trust is designed to provide financial support for a person with a disability while helping preserve eligibility for needs-based public benefits such as Supplemental Security Income or Medi-Cal.
Rather than distributing an inheritance directly to the beneficiary, assets are held and managed by a trustee who may use the funds to enhance the beneficiary’s quality of life. Depending upon the trust terms and applicable benefit rules, trust funds may be used for supplemental needs such as education, transportation, therapies, recreation, technology, personal care, and other goods or services not fully provided by public-benefit programs.
Special Needs Trusts require careful drafting and administration. The appropriate type of trust will depend upon whose assets are funding it, the beneficiary’s circumstances, and the benefits the beneficiary receives or may need in the future.