Special Needs Trusts:
Questions to Ask Before You Meet an Attorney

I am not an attorney and I do not draft trusts. A Special Needs Trust is a legal document and should be prepared or reviewed by a qualified estate-planning or special-needs attorney.

Where I may be able to help is with the practical insurance and benefit side: Medi-Cal, SSI, Medicare, disability income, long-term care questions, and how a trust may fit into the larger planning picture.

Why families look into Special Needs Trusts: Many families worry that leaving money directly to a disabled child or adult could interfere with SSI, Medi-Cal, In-Home Supportive Services (IHSS), or other needs-based benefits. A properly structured Special Needs Trust may help preserve eligibility while still allowing assets to be used for supplemental needs.

Questions to think about before meeting an attorney:

• Is the trust being funded with the disabled person’s own money, or with a parent’s or family member’s money?
• Is the person currently receiving or applying for:
  • Medi-Cal
  • SSI (Supplemental Security Income)
  • SSDI (Social Security Disability Insurance)
  • Medicare
  • Disability Income Insurance
  • Long-Term Care Insurance
• Will the trust be funded now, or only after death through a:
  • Living Trust
  • Life Insurance Policy
  • Will or beneficiary designation?
• Who will serve as trustee and manage the assets?
• Is avoiding Probate also part of the goal?
• Would an ABLE account, beneficiary planning, or a simpler strategy make more sense than a trust?

Important practical point: A Special Needs Trust is not always necessary for every family. In some situations, the legal costs and ongoing administration may outweigh the benefit. That is one reason it helps to first understand the insurance and public-benefit issues involved.

You may also want to review:

• Aged & Disabled Programs
• Dual Coverage & Coordination of Benefits
• Estate Planning Topics
• Skilled Nursing & Long-Term Care

Helpful PDF reference:

Special Needs Trust PDF Guide