San Luis Obispo Special Needs Trust Attorney

Transferring assets to a loved one who collects government assistance will disqualify them from future benefits. However, the Law Offices of Andrew Cohen have a few strategies they can employ to protect both your assets and their eligibility.

A special needs trust, or supplemental needs trust, allows you to leave property directly to your loved one. When a person is chronically ill or physically or mentally disabled, the trust will provide a source of income without jeopardizing their benefits.

According to the Centers for Disease Control and Prevention (CDC), over 61 million Americans currently live with a disability:

• 13.7% of Americans live with a disability related to mobility
• 10.8% have cognitive-related disabilities
• 5.9% are hearing disabled
• 4.6% have a disability related to vision
• 3.7% cannot provide self-care, like bathing or dressing

If you have a loved one with a disability, there are three types of special needs trusts that may be needed depending on your unique set of circumstances:

• First-party: If your loved one is under 65, a first-party trust will allow them to own money and assets until their death. After, any assets left will go to repay the government for any assistance given.

• Third-party: A third-party trust will allow all family members to contribute to the trust without any assets being given directly to the beneficiary. No funds need to be paid back to the government.

• Pooled: A non-profit organization can manage your loved one’s trust as part of a pool. It can be drafted as either a first or a third-party special needs trust, then a portion of the remaining trust assets after the beneficiary’s death will go to the organization.