Protecting Benefits, Securing the Future

Families of individuals with disabilities face a unique challenge: how to provide financial support without jeopardizing eligibility for vital government benefits like SSI and Medi-Cal. A Special Needs Trust (SNT) is a powerful legal tool that helps achieve both goals—preserving benefits while enhancing quality of life.

What Is a Special Needs Trust?

A Special Needs Trust is a legal arrangement that holds assets for the benefit of a person with disabilities. Properly structured, it ensures that funds are available for supplemental needs—such as education, therapies, recreation, and personal care—without being counted as the beneficiary’s own assets for government benefit purposes.

Types of Special Needs Trusts in California

• First-Party Special Needs Trust – funded with the beneficiary’s own assets, such as an inheritance or settlement; requires Medi-Cal payback after death.
• Third-Party Special Needs Trust – created by parents or relatives; no Medi-Cal payback; remaining funds can go to other heirs.
• Pooled Special Needs Trust – managed by a nonprofit organization; combines investments but keeps separate accounts.

What Can a Special Needs Trust Pay For?

Special Needs Trusts are designed to cover supplemental expenses that improve quality of life, such as:

• Medical, dental, and therapy costs not covered by insurance or benefits
• Education, vocational training, and tutoring
• Recreation, hobbies, and travel - Assistive technology, electronics, and mobility aids
• Caregivers and personal attendants
• Home furnishings, clothing, and personal care items Note: Funds generally cannot be distributed directly to the beneficiary as cash, as this may affect benefit eligibility.

Why Families Choose a Special Needs Trust

• Protects eligibility for SSI and Medi-Cal
• Ensures financial stability after caregivers are gone
• Allows loved ones to contribute to the individual’s care without risking benefits
• Provides peace of mind with trustee oversight and long-term planning

Why Work With Comstock & Wagner?

Creating a Special Needs Trust requires compliance with strict laws. At [Comstock & Wagner we:

• Draft customized trusts tailored to your family’s needs
• Explain first-party, third-party, and pooled trusts Coordinate the trust with your estate plan
• Guide trustees in managing funds responsibly

Plan Today for Tomorrow’s Security

Protect your loved one’s future while preserving essential benefits. A Special Needs Trust offers the best of both worlds—financial support and continued eligibility for government assistance. ■ Call us today at (805) 361-0737 or use our online contact form to schedule a consultation with our experienced estate planning attorneys.