Special Needs Trust Planning for Lakewood Families

Start with the beneficiary’s full financial picture

A trust cannot be evaluated in isolation. Trust assets and distributions can affect Supplemental Security Income (SSI) eligibility. Certain special-needs and pooled trusts may fall within exceptions, but those exceptions have conditions. A trust that is not counted for SSI can still affect Medicaid eligibility, including Medi-Cal.

That means a proposed trust should be considered together with the beneficiary’s existing benefits and assets, as well as what property or money may fund the trust. The same arrangement may raise different questions depending on the funds involved and the benefit program at issue.

• List the benefits the beneficiary currently receives or is applying for, distinguishing SSI from Medi-Cal.
• Identify assets already owned by the beneficiary and any funds or property being considered for the trust.
• Gather any proposed trust document and information about the intended source of its funding.

Separate trust planning from benefit eligibility

Planning a trust is not the same as determining whether a particular person qualifies for a benefit. The existence of exceptions for some special-needs and pooled trusts does not establish that a proposed trust meets their conditions or that its assets and distributions will preserve eligibility.

Use planning discussions to identify how the proposed terms, funding, and expected distributions may interact with the beneficiary’s circumstances. Then obtain program-specific guidance about eligibility and the treatment of a particular trust. No trust arrangement can be promised to preserve SSI, Medi-Cal, or another benefit.

Clarify what the named person can do

When reviewing proposed documents, clarify who is named to manage the trust and what responsibilities the documents assign to that person. The named person’s role under the trust is distinct from deciding whether government benefit rules treat particular assets or distributions as countable.

A person named in the documents should not assume that the appointment itself gives authority beyond the role described there, or that it resolves program eligibility. Ask what decisions the documents authorize, what information the person will need to manage the trust, and where a separate program-specific determination is needed.

Prepare for a focused planning discussion

Before discussing a proposed trust, organize the current benefit information, an inventory of the beneficiary’s assets, and a clear description of the money or property intended for the trust. Note any expected distributions or practical needs the trust is meant to address. These details help focus the discussion on the actual arrangement rather than on the trust’s title alone.

Codi M. Dada Law Office P.C. offers virtual services throughout California from its Novato office. A useful next step is to bring the proposed trust, if one exists, and the financial and benefit information together so the questions about terms, funding, management, and program eligibility can be addressed distinctly.