When a loved one has a disability, thoughtful estate planning becomes essential. A Special Needs Trust (SNT) allows families to provide financial support without jeopardizing eligibility for vital government benefits like SSI or Medi-Cal. At SBEMP Attorneys LLP, our estate planning attorneys help families throughout the Coachella Valley protect assets while ensuring long-term care and security for vulnerable beneficiaries.
What Is a Special Needs Trust?
A Special Needs Trust is a legal arrangement that holds funds for a person with disabilities while preserving their eligibility for public assistance programs. The trust pays for supplemental needs—things that improve quality of life but aren’t covered by government benefits—such as education, therapy, transportation, and entertainment.
Types of Special Needs Trusts
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First-Party SNT: Funded with the beneficiary’s own assets (e.g., an inheritance or settlement). Required by federal law to reimburse Medi-Cal after the beneficiary’s death.
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Third-Party SNT: Funded by parents, relatives, or friends as part of an estate plan. These trusts are not subject to reimbursement rules and can be used for lifetime care and future support.
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Pooled Trusts: Managed by nonprofit organizations, these combine multiple beneficiaries’ resources for investment purposes while maintaining separate accounts.
Why Establishing an SNT Matters
Without a proper trust, direct gifts or inheritances to a disabled individual can unintentionally disqualify them from needs-based benefits. By creating an SNT, you ensure:
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Ongoing access to essential medical and housing programs
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Protection from financial exploitation or mismanagement
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Tax efficiency through structured distributions
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Peace of mind knowing that your loved one’s care will continue seamlessly
How SBEMP Helps Families Plan for the Future
SBEMP’s estate planning attorneys draft customized Special Needs Trusts that address every family’s unique financial and caregiving situation. We coordinate with fiduciaries, care managers, and financial advisors to align trust administration with benefit compliance.
Whether you’re setting up a trust as part of a will or funding one through life insurance, SBEMP ensures your loved one’s financial stability and protection extend far beyond the basics. Contact us today to schedule a confidential consultation.
Have any legal questions? Contact the Attorneys at SBEMP Law Firm:
For more information or to request a consultation please contact the law offices of SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) by clicking here.
SBEMP LLP is a full service law firm with attorney offices in Palm Springs (Palm Desert, Inland Empire, Rancho Mirage, Indian Wells), CA; Indian Wells, CA; Costa Mesa (Orange County), CA; San Diego, CA; New Jersey, NJ; and New York, NY.
DISCLAIMER: This blog post does not constitute legal advice, and no attorney-client relationship is formed by reading it. This blog post may be considered ATTORNEY ADVERTISING in some states. Prior results do not guarantee a similar outcome. Additional facts or future developments may affect subjects contained within this blog post. Before acting or relying upon any information within this newsletter, seek the advice of an attorney.