When you have a condition which limits your ability to work, government programs can be instrumental in meeting your medical needs and helping to pay for daily expenses. Although these benefits are crucial, they are also income-sensitive meaning that in order to qualify to receive them, your income and assets will be extremely limited. For California residents, setting up a special needs trust can be an effective way to pay for additional expenses without endangering benefit eligibility. However, you have to have a qualifying disability to create this device. What disabilities typically qualify for a special needs trust?
Typically, if you have a qualifying disability for programs such as Social Security Income (SSI), and Social Security Disability Insurance (SSDI), you will be eligible to establish a special needs trust. One common misconception is that you have to have a physical disability to be able to create this device. However, individuals who have a qualifying psychiatric or developmental disability are also permitted to have these types of trusts.
Today, anyone can set up a California special needs trust. If the trust is set up with assets which belong to the beneficiary or which he or she is entitled to receive, this is considered a first-party trust. Although there used to be certain limits on who could create a California special needs first-party trust, now anyone can set one up including the disabled individual. When the trust is created by someone such as a parent, grandparent, or a friend with assets which do not belong to the beneficiary, this is a third-party trust.
Law Offices of Alice A. Salvo, we have experience with California special needs trusts and can help you learn more about this resource. Please contact us to schedule a free consultation today so we can help you explore your options and start your solution.