Special Needs Trust Planning for McFarland Families

Start with the ownership question

Before focusing on a trust’s name or intended purpose, clarify who owns the funds now and how they would reach the trust. Is the money already the beneficiary’s, or would it come from someone else? Is the trust being considered for existing assets, a future inheritance, or another planned transfer? These are practical questions to discuss because trust assets and distributions can affect Supplemental Security Income (SSI), and the effect depends on the circumstances.

Ownership and source are not enough to determine benefit eligibility. They help frame the review, but the trust terms, how funds are handled, and the particular benefit program also matter. A special-needs or pooled trust may fall within an exception for SSI purposes, subject to conditions; the label alone does not establish that an exception applies.

• Identify the current owner of each asset under consideration.
• Describe where the funds came from or are expected to come from.
• Separate assets already held by the beneficiary from funds another person may contribute.

Consider the benefit program separately

SSI and Medicaid (called Medi-Cal in California) should not be treated as a single eligibility question. A trust that is not counted for SSI can still affect Medicaid eligibility. That distinction makes it important to identify every benefit the beneficiary receives or may rely on, rather than assuming an SSI-related exception settles the broader picture.

The relevant next step may change depending on which program is involved and whose assets would fund the trust. If the beneficiary receives multiple benefits, list them separately and ask how the proposed arrangement would be evaluated for each. No trust structure guarantees that an inheritance or trust will preserve SSI, Medi-Cal, or another benefit.

Compare the proposal with the real circumstances

A useful review begins with the proposed trust document, if one exists, and a clear account of the assets and benefits involved. Gather current benefit notices, records that show who owns the relevant funds, and any document describing a planned inheritance or contribution. If there is no draft yet, write down the proposed source of funds and the questions the family hopes the trust will address.

For example, a family considering a future inheritance can first distinguish that expected gift from money the beneficiary already owns. That distinction is a starting point for discussion, not a prediction about eligibility. The terms and handling of a trust can matter, and the applicable exception conditions must be considered rather than presumed.

• Bring the proposed trust or a summary of its intended terms.
• List current benefits and note any pending benefit decisions.
• Record who owns each asset and who is expected to contribute it.

Choose a next step based on what is unresolved

If ownership or the source of funds is unclear, resolve that factual question before relying on a proposed trust structure. If those facts are known but the effect on benefits remains uncertain, focus the discussion on the specific trust terms and the separate SSI and Medi-Cal questions. The available facts do not support a numerical eligibility test or a guaranteed outcome; a trust that may qualify for an SSI exception can still require a distinct Medicaid review.

Codi M. Dada Law Office P.C. provides virtual services statewide from its one in-person office in Novato. A practical first conversation can center on the beneficiary’s current benefits, the assets involved, and the ownership question that could change the next step.