Special Needs Trust Attorney in Simi Valley

If a disabled family member receives an inheritance directly, without a special needs trust in place, their government benefits end. SSI, Medi-Cal, and SSDI are all means-tested to varying degrees, and a direct inheritance counts as a resource that disqualifies the recipient. The trust must exist before the money arrives. Once benefits are terminated by a disqualifying resource, restoring them takes time and may require a first-party trust with payback provisions. Doing it right upfront is always the better path.

I am an estate planning attorney serving Simi Valley and all of Ventura County. I do this work over Zoom or phone and sign in person. Simi Valley has many multi-generational families with caregiving situations, and the special needs trust planning I do for these families is some of the most important work in my practice. For the full planning context, see estate planning in Simi Valley.

Third-party trusts for Simi Valley families

A third-party special needs trust is established by a parent, grandparent, or other family member with their own assets for the benefit of the disabled person. It is designed to supplement government benefits, not replace them. The trust can pay for transportation, technology, recreation, education, personal care items, and other needs that SSI and Medi-Cal do not cover. The trustee manages distributions in a way that does not count as income or resources for benefit purposes. At the disabled beneficiary’s death, the remaining trust assets go to other family members or to a designated remainder beneficiary, with no payback to Medi-Cal. The absence of a payback requirement is the key advantage of a third-party trust over a first-party trust.

Integrating with the parents’ estate plan

For a Simi Valley family where one child has a disability and others do not, the parents’ living trust needs to coordinate with the special needs trust. The disabled child’s share should pour into the special needs trust, not go directly to the disabled child. The non-disabled children’s shares go directly to them. Getting this coordination right in the drafting stage prevents a crisis when the parents die. For families also dealing with the conservatorship question for an adult disabled child, see conservatorship. A living trust that references the special needs trust is the standard mechanism for handling this.

Questions Simi Valley clients ask

How do I find a trustee who understands the rules? A professional trustee who specializes in special needs trust administration is an option. Nonprofit pooled trusts managed by disability advocacy organizations are another. A family member trustee who is willing to learn the rules and who will actually manage the trust actively can also work. I can help you think through the options based on your family’s situation.

Can the trust own the disabled person’s home? Yes, a special needs trust can own real estate for the beneficiary’s use. Housing owned by the trust and used by the beneficiary is treated differently from cash distributions for rent under SSI rules. This is an area where the rules are specific and getting professional guidance matters.

What if the disabled person receives a personal injury settlement? A settlement that goes directly to a disabled SSI recipient is a resource that will end their benefits. A first-party special needs trust established with settlement funds, with court approval, can protect benefits while still allowing the disabled person to benefit from the settlement. This requires immediate legal action after a settlement is reached.

Book a consultation at https://ridley.click/eric-60 or call 805-244-5291. I serve Simi Valley and all of Ventura County.