For someone with a disability, having a special needs trust can be the difference between having what they need to be comfortable and just getting by. One of the most important features of this resource is that it can be used to pay for the trust beneficiary's qualifying expenses without endangering his or her public benefit eligibility. However, trust payments need to be made carefully. Otherwise, they could be considered income to the beneficiary. Many beneficiaries want to know: Can a Special Needs Trust Pay for Food and Shelter?
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?
When someone has a significant disability, which prevents them from supporting themselves, they will probably have to rely on government benefit programs such as California Medicaid (Medi-Cal) and Social Security Income (SSI). While programs provide the recipient with essential medical coverage and a small amount of money, they rarely cover their true cost of living. Medi-Cal and SSI are income-sensitive meaning that to qualify for coverage, the recipient is generally not allowed to have more than $2000 in personal assets. However, in most cases, a person in this position is going to need something to supplement these benefits. A California special needs trust can be a valuable resource in this situation. For those planning, the question may come up: At what age is a special needs trust required?