Special Needs Trust
Caretakers & Parents
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A Special Needs Trust (SNT), sometimes called a Supplemental Needs Trust, is a legal arrangement in which a person or organization (like a bank) manages assets for a person with a disability. The person with the disability is called the “beneficiary” and the person who is managing the assets is the “trustee.” Many kinds of assets can be put into a trust, such as cash, stocks, bonds, and real estate. An SNT provides for the needs of a person with a disability without losing or reducing their benefits such as
- Supplemental Security Income (SSI),
- Medi-Cal,
- In-Home Support Services (IHSS), and HUD housing assistance.
Assets in an SNT won’t be counted toward the SSI, Medi-Cal and IHSS asset limit of $2000 for an individual.
Links & References
- CA Disability Benefits 101
- Transamerica Special Needs Trust Brochure
- Jewish LA Trust & Services * FAQ’s *
- South Eastern Trust Company
- CA Department of Health Care Services – Special Needs Trusts
What Parents Need to Know about Special Needs Trusts
VIDEO
TransAmerica
Special Needs Trust Brochure
- Get Life Insurance Quote to fund the trust
- Our webpage on Special Needs Trusts
SSI-Related Programs & Coverage Groups
Income & Assets Chart
Our web pages on:
- Aged and Disabled Federal Poverty Level Program
- Part D Rx Low Income Subsidy – LIS – Extra Help
- Hospice Coverage – Medicare
SSI #Resources & Income Limits
The Aged & Disabled Medi-Cal program uses SSI countable income rules as well as a few extra rules you should know. For more information, visit or webpage on the SSI program, the Medi-Cal section of the Disability Benefits 101 website. CA Health Care Advocates Archive
Countable resources are the things you own that count toward the resource limit. Many things you own do not count.
- Have less than $2,000 in Countable assets for an individual ($3,000 for a couple).
- Have less than $1,271 - 123% of FPL in countable monthly income for an individual ($1,719 for a couple). ca health advocates.org ADFPL * AB 715 Fact Sheet * Western Poverty Law *
- Share of Cost if income is too high, but you qualify on asset test?
#Attorney 's that can help you through the Social Security Disability maze
- California Social Security Attorney.org/
- CA State Bar Attorney Referral Service
- Legal Match.com
- Sellers Law
- Hill & Ponton
- premier disability.com
- Cantrell & Green
We don't necessarily know these attorney's...
Related Pages
#My Medi-Cal
How to get the Health Care You Need
24 pages
Smart Phones - try turning sideways to view pdf better
- Medi Cal Explained CHCF
- 10 Essential Health Benefits
- Our Webpage on Medi & Denti Cal Benefits
- Western Poverty Law - Exact Legal Rules on Coverage for Low Income Californian's
Nolo Social Security, Medicare, Medi Cal & Government Pensions
Our Webpage on
COVID 19
When does the trust actually get funded, go into place, become effective?
See page 47 of Nolo’s book on Special Needs Trusts – The best known way is to specify what assets go into the trust at your demise. Be careful of probate, page 48. See Revocable Living Trusts on Page 50. Where a living trust can fund a Special Needs trust at your passing. See page 140 about actually creating the Special Needs Trust
What are the rules on what my adult child can get from the SNT Special Needs Trust?
See Chapter 2 of Nolo’s book.
I have an Adult child that seems to be “losing it” and can’t really manage their money.
Would a Special Needs Trust be appropriate?
Try checking out a Probate Conservatorship to protect the adult child’s current assets.
See also Court Website for FAQ’s
Probate resources
http://www.canhr.org/publications/newsletters/NetNews/Feature_Article/NN_2005Q4.html
Will a Special Needs Trust avoid income taxes on the earnings of the assets in the trust?
No,
I’m not a CPA, but here’s authoritative sites that say the income in a trust gets taxed.
After money is placed into the trust, the interest it accumulates is taxable as income—either to the beneficiary or the trust. The trust is required to pay taxes on any interest income it holds and doesn’t distribute past year-end. Interest income the trust distributes is taxable to the beneficiary who gets it. Campbell Law
Investopedia
What is the tax rate for a trust?
Here’s an excerpt from Nolo on Special Needs Trusts $25 for the ebook – pdf or $28 for paperback and ebook is a bargain!
https://kaidenelderlaw.com/Special-Needs-Trusts