Protect Benefits. Provide the Right Support.
If you’re caring for a loved one with a disability, you already know how much planning for their life matters. One wrong move—like leaving money to them outright—can unintentionally cost them essential benefits like SSI or Medi-Cal (like Medicaid). A special needs trust helps you completely bypass that risk while still providing financial support, comfort, and dignity.
At Legal Norcal, we’ve been working in Chico for over 4 years for families across the state who need a special needs trust lawyer in California that they can actually understand and trust. We don’t believe in confusing legal talk or complicated plans. We only strive to provide the best planning that protects your loved one’s security while maintaining their benefits.
What is a Special Needs Trust?
A special needs trust is an estate planning tool designed to hold assets for a person with a disability without disqualifying them from necessary government benefits.
Instead of giving money directly to your loved one—which could unintentionally disqualify them from benefits—assets are placed in the trust and managed by a trustee you choose. The trustee uses those funds to pay for supplemental needs, such as education, therapy, personal care, or recreational activities—things that improve quality of life but aren’t covered by public programs.
Why a Special Needs Trust Is So Important in California
California’s public benefits programs have strict income and asset limits. Even a small inheritance or lawsuit settlement can cause a loved one to lose eligibility—sometimes permanently.
A properly drafted special needs trust:
- Preserves SSI and Medi-Cal eligibility so your loved one continues receiving critical support.
- Protects assets from being spent too quickly or in ways that don’t benefit your loved one.
- Allows long-term financial planning, ensuring funds are available for your loved one’s needs both now and in the future.
Without a trust, families risk expensive mistakes, government penalties, or lost benefits that are extremely hard to get back—problems that could have been avoided with professional guidance.
Types of Special Needs Trusts
This trust is funded with assets belonging to someone other than the person with a disability; usually, parents, grandparents, or other family members. It’s the most common type of special needs trust.
- Purpose: Provide financial support or inheritances for your loved one without affecting government benefits.
- Flexibility: The trust can be tailored to cover a wide range of supplemental needs, from education and healthcare to recreation and travel.
- Control: You decide how the money is used and who manages it as trustee, giving you peace of mind that funds are spent appropriately.
This trust is used when the person with a disability receives money directly, such as from an inheritance, lawsuit settlement, or personal savings. Because the funds belong to the disabled individual, strict rules apply.
- Purpose: Protect government benefits while allowing the person with a disability to use the assets for supplemental needs.
- Medi-Cal Payback: Upon the beneficiary’s passing, any remaining funds in the trust are typically used to repay the state for Medi-Cal benefits received.
- Legal Requirements: Must meet federal and California regulations to avoid disqualifying the beneficiary from essential benefits.
A pooled trust is managed by a nonprofit organization. Funds from multiple beneficiaries are pooled together for investment purposes, but each person has a separate account.
- Purpose: Ideal for individuals who don’t have a private trustee or a large sum of assets to fund a private trust.
- Benefits: Shares administrative costs among many participants, making it more affordable, while still maintaining individualized support.
- Flexibility: The nonprofit trustee manages the investments and distributions according to each beneficiary’s needs
How Legal Norcal Makes the Process Easier
The process doesn’t have to be complicated or intimidating.
It starts with a conversation about your life, your family, and what you want to protect. From there, your trust is drafted to reflect your real circumstances—not a generic template. You’re guided step by step, so nothing is missed.
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Frequently Asked Questions
Who can benefit from a special needs trust?
Can I fund a special needs trust with an inheritance or settlement?
Can the trust be changed later?
Contact a Special Needs Trust Lawyer Today
Special needs planning is a huge step to protect your loved one’s future, independence, and quality of life. Mistakes can jeopardize benefits and create unnecessary stress for your loved one, something no one ever wants to cause.
You don’t have to figure this out alone. Protecting your loved one’s financial future is too important to leave to chance.
Schedule a free consultation today and take the first step toward securing your loved one’s benefits, assets, and peace of mind.
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