Special Needs Trusts in California

If someone you know has a disability and receives needs-based public benefits, they may need a Special Needs Trust (SNT) to protect those benefits. In California, these benefits include Supplemental Security Income (SSI), non-California Medicaid, Medi-Cal (if linked to SSI), and certain government housing programs such as public housing and Section 8 vouchers.

There are two main types of Special Needs Trusts: Third Party SNTs and First Party SNTs.

A Third Party SNT is set up with assets from someone other than the person with a disability. With this trust, the person with a disability can receive and hold assets without losing their public benefits. The person who creates the trust (the settlor) can also include instructions for the lifelong care and advocacy of their loved one.

A First Party SNT lets an individual with a disability put their own assets into a trust, so they won’t be penalized or lose their needs-based public benefits.

Want a deeper explanation of how Special Needs Trusts work and when they may be appropriate? Watch our full YouTube video here: https://www.youtube.com/watch?v=l2ZHjDtuIR4