Special Needs Trust Planning for Larkspur Families

Start with the ownership question

Before deciding whether a special needs trust fits, clarify who owns the money now and who has authority to make decisions about it. Is the beneficiary already entitled to receive funds, or is someone else considering setting funds aside for the beneficiary? Who would be involved in managing the funds under the proposed arrangement?

Those are practical questions to organize the discussion, not a determination of eligibility. The answers may change what needs to be evaluated next. A trust’s effect on benefits can depend on its terms and circumstances, so the trust name alone cannot establish that benefits will be preserved.

• Identify the proposed source of funds and who currently owns them.
• Clarify who is proposing the trust and who would have authority under it.
• List the benefits the beneficiary currently receives or is seeking.

Consider SSI and Medi-Cal separately

Trust assets and distributions can affect eligibility for Supplemental Security Income (SSI). Exceptions exist for certain special-needs and pooled trusts, but conditions apply; the label attached to a trust does not by itself show that an exception applies.

SSI and Medi-Cal should not be treated as interchangeable questions. A trust that is not counted for SSI can still affect Medicaid eligibility. Since Medi-Cal is California’s Medicaid program, the SSI analysis alone does not settle the Medi-Cal question. No proposed arrangement should be treated as a guarantee that an inheritance or trust will preserve SSI, Medi-Cal, or another benefit.

Organize the facts before comparing options

A focused review begins with the beneficiary’s actual situation and the proposed funding arrangement. Gather what you have about existing benefits, the source and current ownership of proposed funds, and any trust document or draft already under consideration. If the beneficiary has no current trust, a concise description of the proposed arrangement can still help frame the questions.

Then separate known facts from open questions. For example, note whether the funds are already the beneficiary’s property, who is expected to make decisions about them, and which benefits are involved. These preparation steps help identify the ownership or authority issue that may affect the next step; they are not legal requirements or a benefits determination.

• Bring available trust documents or a description of the proposed arrangement.
• Write down the beneficiary’s current benefits and questions about how funds would be held or managed.
• Flag any uncertainty about ownership or decision-making authority for discussion.

Choose the next step based on what remains uncertain

If ownership or authority is unclear, resolve that question before assuming a particular trust structure is appropriate. If those facts are clear, the next discussion can focus on how the proposed trust and its terms relate to the benefits at issue, including whether an exception may apply and what conditions matter.

For a Larkspur family, Codi M. Dada Law Office P.C. can discuss the planning questions virtually or through its Novato office. Bring the facts you have and identify the specific benefit questions that need attention. A planning discussion can help clarify what should be evaluated, but it cannot guarantee a program’s eligibility decision or that benefits will remain unchanged.