Special Needs Trusts in San Marcos, California

Also Providing Supplemental Needs Trust Services for Carlsbad, Escondido, Vista, and Oceanside

A special needs trust, often called a supplemental needs trust, is a document designed to protect individuals who have disabilities, special needs, or chronic or acquired injuries or illnesses. These trusts can be formed as “stand alone” entities, or they can be integrated into a will.

The amount of assets you can leave in this trust is unlimited. Under most circumstances, the government will not count any assets held in this trust when considering whether a person with a disability qualifies for benefits, such as Medicaid, vocational help, housing subsidies, supplemental security income, and so forth. In other words, the special needs trust is intended to provide a kind of cushion – a mechanism to provide benefits above and beyond government and state benefits.

Sliding Scale

The trust and government benefits programs are designed to work in tandem. If government benefits manage to meet all of the person’s needs, the trust would not provide any money. On the other hand, if the government can only meet some of the disabled person’s needs, the trust would cover the balance.

Limits on Use of Funds and Other Nuances

The funds cannot be used arbitrarily. Medicaid rules, for instance, stipulate that assets cannot purchase food or housing, although that restriction does not necessarily always hold. As you can imagine, the rules and laws that govern these trusts can often be byzantine, hard to understand, and sensitive to small changes to the beneficiary’s needs, government benefit rules, and so forth.

Funds in trust cannot be subject to seizure or garnishment by creditors, under most circumstances. These trusts also provide other protections that make them enticing instruments, even for families that have ample resources, wealth, and assets. The arrangement also protects the family from certain lawsuits. For instance, if a disabled beneficiary named in the document causes injury to someone else – in a car crash, for instance – the family’s assets will be protected because the beneficiary will not be considered a “deep pocket.”

Understanding Subtle Differences That Matter: a Caring, Comprehensive Approach

At the Law Office of Darius Khayat, we strive to make sure that our clients understand the full gamut of options available to them, and we bring to bear a wealth of experience, access to great local San Marcos resources, and a caring touch. For over 19 years, we have helped families like you develop estate planning solutions, contingency strategies, and forward thinking tactics to protect hard won money, shield vulnerable family members from harm or from difficult financial circumstances, and provide ongoing assistance to help our clients stay in control and confident regarding their finances and futures.

The Law Office of Darius Khayat serves San Marcos as well as surrounding communities, including Carlsbad, Vista, Escondido, and Oceanside. Call us now: 760-591-0245.

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