Special Needs Trust Planning for Tiburon Families

Start with the beneficiary’s benefits and the proposed funds

Before comparing trust options, identify the benefits the beneficiary currently receives and any benefits the family is concerned about preserving. Supplemental Security Income (SSI) and Medi-Cal should be considered separately: a trust that is not counted for SSI may still affect Medicaid eligibility. A conclusion about one program therefore does not settle the question for another.

Next, describe the funds being considered for the trust: who owns them now, where they come from, and whether they are already held for the beneficiary. These are practical questions to bring to planning discussions, not a substitute for a program-specific eligibility determination. Trust assets and distributions can affect SSI eligibility, so the terms and how the trust is used matter alongside its name.

• List the beneficiary’s current benefits and any pending benefit questions.
• Identify the proposed funds and their current owner or source.
• Bring the existing trust or planning documents, if any, and note how the family expects funds to be used.

Compare possibilities without assuming an exception applies

There are exceptions for certain special-needs and pooled trusts, but conditions apply. That means the category or title of a trust alone is not enough to conclude that its assets or distributions will be treated favorably. The relevant question is whether the proposed arrangement and circumstances meet the conditions that apply to the benefit at issue.

A useful planning conversation compares the proposed trust with the alternatives the family is considering, including what each would mean for the funds and the beneficiary’s existing benefits. Do not treat that comparison as a promise that benefits will continue unchanged. Even when an arrangement is not counted for SSI, Medicaid eligibility may be affected. Ask for the SSI and Medi-Cal implications to be considered independently before selecting an approach.

Understand the limits before deciding

No trust choice can be assumed to preserve SSI, Medi-Cal, or every other benefit. The available information here does not establish the beneficiary’s eligibility, determine whether a particular trust qualifies for an exception, or resolve how a specific distribution will be treated. Those questions depend on the program and the facts of the proposed arrangement.

The practical consequence is that a family should not transfer or direct funds based only on a trust’s name or a general description of special-needs planning. A plan should be evaluated against the beneficiary’s actual benefits and the proposed funding and distribution details. If those details are not yet clear, identify the open questions before making a choice rather than treating an assumed benefit outcome as settled.

Prepare for a focused planning discussion

A concise written summary can make the decision more concrete: note benefits currently received, funds proposed for the trust, who owns those funds, and the family’s intended uses. Include existing trust or planning documents if available. You can then ask how the proposed trust’s assets and distributions may affect SSI, whether a specific exception is being considered and what conditions matter, and whether Medi-Cal needs a separate eligibility analysis.

Codi M. Dada Law Office P.C. serves Tiburon clients virtually from its Novato office and provides virtual services statewide. A focused next step is to discuss the beneficiary’s circumstances and the proposed funds before choosing a trust structure.