Torrance Special Needs Planning Lawyer

Torrance Special Needs Planning Attorney

Anyone who is considered someone with special needs has a unique uphill struggle ahead of them. If you are caring for them much of the time, you may be concerned about what happens to them after you are gone. It’s understandable to feel apprehension and even fear for your loved one, who may struggle to live their life without you. That’s why it’s important to ensure protections for your estate with the help of a Torrance special needs planning lawyer.

Estate planning is important for anyone who has substantial assets. It’s reasonable and somewhat commendable to want to make sure your loved ones are protected after you pass away. The legal team at Meinzer Law Firm, PC, can help you establish the right kind of legal protection for your estate, including establishing a special needs trust for your loved ones who require additional protection. A good lawyer can make sure your estate plan is as sound as it can possibly be.

What Is Special Needs Planning?

According to the U.S. Census Bureau, there are over 4 million Californians with a disability. Special needs planning is the act of making sure that your loved ones with disabilities are provided with financial and legal support in your estate plan. At the same time, you want to make sure their government benefits are not impacted by your protection.

The goal is to provide your loved ones with unbreakable financial stability and continued access to their health benefits. Improving their quality of life is everything. The most effective way to do this is with a special needs trust.

A special needs trust (SNT) is a unique legal arrangement that holds a disabled person’s bequeathed assets in trust while still allowing them to be considered eligible for the various governmental assistance programs they may qualify for and receive, such as Medicaid or Supplemental Security Income (SSI). It’s arguably the most effective way to ensure that your disabled loved one is protected by your estate plan while not compromising their quality of life.

There are two main types of special needs trusts. Both forms provide much-needed protection to disabled people seeking to inherit something from your estate plan. The assets in the trust can be used as a significant complement to the beneficiary’s ongoing government benefits and help cover additional expenses. These two main types are:

• First-Party SNT. A first-party SNT, which is also called a self-settled SNT or a (d)(4)(A) SNT, is wholly funded by the disabled individual’s own income or assets. The beneficiary is the disabled person themselves. For these trusts to be considered legally binding and valid, they can only be established by a disabled individual under the age of 65, they must be irrevocable, and the trust must establish Medicaid reimbursement upon death.
• Third-Party SNT. A third-party SNT is just a bit different. These aren’t established by the disabled individual. They are set up by someone else, such as a parent or other family member, and are built using assets that never belonged to the disabled individual. These trusts are also not subject to any sort of recovery by the Department of Health Care Services, and the remaining funds can be passed to family members instead of Medicaid.

If you need disability services in Torrance, your special needs planning lawyer may be able to recommend several good programs. The city’s Adaptive Recreation and Sports program offers assistance and fun activities for intellectually disabled individuals over the age of 12. The ICAN California Abilities Network provides life skills training and employment opportunities for individuals with disabilities as well.

FAQs

Q: What Can a Special Needs Trust Not Pay for in California?

A: In California, a special needs trust cannot pay for basic living costs such as food, rent, and utilities. These essentials are already paid for through public benefits. An SNT also cannot pay for gift cards, restaurant meals, HOA fees, property taxes, or cash. These expenses are not considered valid SNT expenses because they could jeopardize the disabled individual’s government benefit eligibility. You should ask your lawyer for more information.

Q: How Does Special Needs Planning Work?

A: Special needs planning helps ensure that families can provide long-term assistance and financial security to their loved ones who are dealing with disabilities. Additionally, developing a special needs trust ensures that this long-term assistance does not clash with any governmental benefits the disabled individual may already be receiving. An experienced estate planning lawyer can help you put together a comprehensive plan.

Q: How Does a Special Needs Trust Work in California?

A: In California, a special needs trust (SNT) works by allowing a disabled individual or their chosen guardians to manage certain assets without risking the individual’s eligibility for governmental assistance, which they may be relying on significantly. A trustee is put in charge of the SNT. Their goal is to manage the assets in the trust and ensure the distribution of the assets as needed.

Q: What Is the Downside of a Special Needs Trust?

A: Despite being quite useful when it comes to ensuring long-term financial stability, there are several downsides to establishing a special needs trust. The primary downside for many may be the ongoing legal costs. Developing an SNT can be expensive and time-consuming, especially when you consider the administrative costs needed to continue maintaining the trust. It can also be difficult to find a trustee you feel is competent and trustworthy.

Contact Torrance Special Needs Planning Lawyer

It’s understandable to want to leave something behind for your loved ones after you pass away, which is where an estate planning lawyer can be very helpful. You may also want to ensure your disabled loved ones are protected right now, which you can do by establishing a special needs trust in their name. A good lawyer can help you put something together that doesn’t interfere with their governmental benefits.

The legal team at Meinzer Law Firm, PC, can help you ensure your loved one’s financial stability using a trust. Contact us to speak to a valued team member about how we can help your case. Securing a future for your loved ones can help to put your mind at ease so that you can enjoy your time with them.