Many parents in our community have disabled children. Often, when planning for their own deaths, these devoted parents realize that they are the only advocates for their disabled child. Once they are gone, who will advocate for all of the necessary services for their child? Who will make sure the child maintains their public benefits, is properly educated, has proper living arrangements, necessary medical care, and is fulfilling their potential? This is where a “third party” special needs trust can be an invaluable resource.
A “third party” special needs trust is the best method for bequeathing or gifting assets to a person with a disability, and continuing the care and support for the disabled child. Usually the “third party” (such as a parent, relative, or friend) establishes a special needs trust for the benefit of the disabled person. The “third party” then amends their own personal trust, so that upon the “third party’s” death, a portion of their assets is distributed to the special needs trust. That way, the disabled individual does not receive an “inheritance” outright upon the parent’s death, but rather receives funds and assistance for their benefit through the special needs trust.
A properly established special needs trust can do many important things. The trust can establish a management team for lifelong advocacy and care, plan for future modifications in public benefits and trust law, preserve public benefits such as SSI and Medi-Cal, pay for numerous things that public benefits do not cover, and direct distribution of remaining assets after the death of the beneficiary with a disability.
Our office has witnessed too many disabled adult children receive inheritances outright, and suffer the consequences of lost public benefits because of “excess resources.” This can have disastrous results. Further, without advance planning, the disabled person loses their support system, and their advocate. Special Needs Trusts are a powerful tool, and should be understood and used by parents with disabled children.
For an appointment, please call the Law Office of Jane M. McNamara at 661-287-3260.