How Does a Special Needs Trust Work in California?

If you are a caretaker for a loved one with special needs, you may be wondering: How does a special needs trust work in California? The answer is straightforward, but that doesn’t mean it’s simple to set one up, particularly if you’re working with a lot of assets. The good news is you can hire a special needs trust lawyer to help you through it. It’s also helpful to understand more about special needs trusts for yourself.

Special Needs Trust Cases in California

Over four million residents throughout California live with a disability, presenting them with unique challenges in nearly every aspect of their lives. Moreover, nearly 1.4 million children under the age of 17 live with or have an increased risk for chronic health conditions that require additional care beyond the norm. And it’s estimated that the number of children diagnosed with medically complex conditions is going to double over the next 10 years or so.

If you’re the caretaker for someone with special needs, it’s more imperative to plan for your future because it means planning for theirs, too. It’s never too early to start estate planning. Accidents are the third-leading cause of death in California, so you never truly know what your future holds.

It’s beneficial to be as prepared as possible just in case something happens to you. To protect your loved ones and ensure they receive long-term support even after you’re gone, it’s wise to consider creating a special needs trust (SNT). SNTs protect assets for individuals with special needs, often while still allowing them to be eligible for government assistance programs.

Types of Special Needs Trusts in California

There are two main types of special needs trusts that you can create in California: first-party SNTs and third-party SNTs. The right trust for you and your family is going to depend on your unique situation. It’s helpful to understand a bit more about each, so you can make the right choice for your assets.

• First-party SNTs: These types of trusts are funded with assets that belong to the person with special needs. They are helpful when structuring assets to protect finances while maintaining eligibility for government benefits and are often used when an individual receives an inheritance, settlement, or other large amount of money.

• Third-party SNTs: These trusts are established through assets from an outside party, usually a trusted family member or friend of the individual with special needs. They are often used in estate planning to protect the person with special needs after the grantor of the trust passes away.

First-party trusts are ideal in situations where the person with special needs receives direct assets, while third-party trusts are helpful for finding flexible solutions for protecting your loved ones with special needs. If you’re not sure which option is right for your situation, you can count on a special needs trust attorney from Meinzer Law Firm, PC, to help you understand your legal options.

Hire a Special Needs Trust Lawyer

Establishing a trust can be complicated, especially if you’re trying to do everything on your own. Fortunately, you don’t have to do everything by yourself. Instead, you can reach out to a local California special needs trust attorney at Meinzer Law Firm, PC.

Our team brings over two decades of experience under the State Bar of California. We also have affiliations with the following:

• Los Angeles County Bar Association
• National Academy of Elder Law Attorneys
• South Bay Bar Association
• South Bay Estate Planning Council

We have helped hundreds of families with their estate planning needs over the years and are ready to assess your financial situation and strategize on the right avenues for protecting your assets.

FAQs

Q: When Is the Right Time to Set Up a Special Needs Trust in Redondo Beach?

A: When you think about estate planning, you may think about yourself far off in the future. There’s never a wrong time to start planning for your future. Moreover, there isn’t a wrong time to set up a special needs trust, especially if you’re dealing with a complex financial profile. The general rule of thumb is the sooner the better when it comes to setting up a trust, so you can be sure everything is squared away.

Q: Do I Need to Work With a California Special Needs Trust Attorney?

A: You’re not required to hire a special needs trust attorney to establish a trust in California, but it is highly recommended to work with a legal professional. An attorney can help you understand California special needs trust laws and determine the right way to protect your assets. Plus, they can guide you through any challenges that arise along the way.

Q: How Much Does It Cost to Work With a California Special Needs Trust Lawyer?

A: If you hire a special needs trust lawyer, you must pay for it, but it can save you in the long run. The exact cost depends on the complexity of your financial situation and the services you require to have everything set up properly. The lawyer’s experience level and reputation may also factor into their prices.

Q: What Types of Special Needs Trusts Can I Create in California?

A: There are two main types of special needs trusts that you can create: first-party SNTs and third-party SNTs. First-party, or self-titled, SNTs are funded entirely through the person with special needs’ own income and assets, and the beneficiary is the disabled person themselves. Third-party SNTs are set up by a parent or trusted family member and are funded through external assets.

California Special Needs Trust Lawyer

If you’re ready to discuss your options regarding estate planning and creating a special needs trust, turn to Meinzer Law Firm, PC. Our team brings over 25 years of experience in trust and estate planning in California, and we’re ready to put it to work for you. Call the office to set up a consultation today. With our knowledge and experience, you will get the support you need to help you plan and care for your family member with special needs.