When Would I Use a Special Needs Trust?

A special needs trust is a type of trust that can be used to set aside resources for the benefit of a person with a disability without disrupting need-based government benefit eligibility. In this blog, we will look at some scenarios that would call for the creation of a special needs trust. Direct Gifts and Inheritances Let s say that you have someone in your family who has a disability who is enrolled in the Medicaid program. Medicaid is a health insurance program, and it is only available to people with limited financial resources. in California, the program is called Medi-Cal. You would like to give this person a gift so that the loved one could enjoy a higher standard of living. If you give a direct gift with no strings attached, you would be improving this person s financial stature. As a result, ongoing eligibility for Medi-Cal coverage could be lost until the gift was spent. Under these circumstances, you could go in another direction. You could create a special needs trust fo


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