Creating A Trust For A Family Member With A Disability
If your estate plan provides money or assets to a person who is receiving government benefits such as Medi-Cal, you risk making him or her ineligible for those benefits. In effect, you will be making a gift to the government, since your beneficiary would have to spend those assets before he or she can once again become eligible for government benefits.
There is a way to provide assets to a beneficiary without making him or her ineligible for income-based government benefits. It’s called a special-needs trust. Attorney William S. Dunlevy in Camarillo, California, knows estate law and can establish a special-needs trust to meet your goal of providing money or assets to a disabled beneficiary.
What Are The Benefits Of A Special-Needs Trust?
A special-needs trust is a trust created specifically for those with physical or mental disabilities. When a disabled beneficiary receives an inheritance from a will, it puts that person at risk of losing government benefits such as subsidized housing, Supplemental Security Income and Medi-Cal.
Since assets placed in a special-needs trust are not owned by the beneficiary, they will not count as the beneficiary’s income or assets when determining whether they are eligible for government benefits.