Special Needs Trust Brochure

Special Needs Trust for Disabled Adults – Heirs
in California 

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A Special Needs Trust (SNT)

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

Assets in an SNT won’t be counted toward the SSI, Medi-Cal and IHSS asset limit of $2000 for an individual.

Links & References

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 our webpages on the  SSI & Medi Cal programs, and follow the various links on this page

FLASH!!!

July 1, 2022, California  will raise the asset limit in the Medi-Cal programs serving older adults and people with disabilities to $130,000 for an individual and $65,000 for each additional family member.

no sooner than January 1, 2024, the state will eliminate the asset test completely. CA Health Care Advocates *

  1. Have less than $2,000 in Countable assets for an individual ($3,000 for a couple).
    1. Medi-Cal property limitations.
    2.  asset questionnaire
    3. CANHR simpler list
    4. CANHR Fact Sheet
    5. Understanding Medi-Cal’s Asset Test for Seniors and People With Disabilities
    6. Western Poverty Law 
    7. Nolo - SSI Income & Asset Limits
    8. Income SSA.Gov
      1. SSA Site
    9. Will my settlement affect my government benefits?  VIDEO
    10. dhcs.ca.gov/Asset-Limit-Changes-for-Non-MAGI-Medi-Cal
      1. dhcs.ca.gov/asset test amendment
      2. dhcs.ca.gov/Asset-Limits-Report
    11. california healthline.org/sset-test-elimination
    12. FAQ's
    13. Our webpage on SSI Resources & Income
  2. 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  * 
    1. 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

7 comments on “Special Needs Trust

    • 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

      See chapter 2 for what payments and benefits the child can get

  1. 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?

    • 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

      See the Nolo book for more detail, like the tax rates

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