If you are one of the many residents in California who is the parent of a child with special needs, you understand the unique concerns you face when considering how to support your child and their needs for the duration of their life. A special needs child might not have the ability to work to a level at which they can financially support themselves, making it important to you that you establish some means of ongoing income for them. A special needs trust may be a good option for this.
As explained by Forbes, there are multiple types of special needs trusts available. One of these is a pooled asset trust. In this trust, a nonprofit entity manages the disbursement of assets and all assets in the trust come from a variety of sources. A third-party trust can be established with assets owner by someone other than your special needs child who is identified as the beneficiary of the trust. If your special needs child owns the assets to be put into the trust, then the trust will be a self-titled of first-party trust.
The Achieving a Better Life Experience Act of 2014 allows you to set up an ABLE account that is similar to a college savings plan.
This information is meant to give parents of special needs children in California an idea of the different types of special needs trusts available to them so they can begin to identify the one that might be best for their needs. Please call our office for further assistance, we are here to help.