Special Needs Planning
Retain your loved ones benefits, including Medi-Cal and Supplemental Security Income (SSI).
When a special needs beneficiary comes into money, it can disrupt his or her public benefits. This can happen if they win a court settlement, or come into an inheritance directly. In order to avoid losing benefits, a beneficiary, may be able to create his or her own special needs trust or a parent, gradparent or court may do so on the beneficiary’s behalf. This is referred to as a First Party Special Needs.
Although it allows a disabled person to be able to keep his or her benefits, if there is any money remaining in this type of trust upon death, then it must be paid back to the government for services it provided. This can be avoided with proper planning, or in the case of an inheritance through a living trust, a skilled attorney may be able to fix the trust.