How to Manage Special Needs Trusts
The owner of Carolyn M. Young Fiduciary Services, Carolyn Young has been working as a fiduciary for more than 30 years and currently manages financial assets totaling upwards of $75 million. One of the most common areas Carolyn M. Young Fiduciary Services focuses on is special needs trusts.
In California, a disabled person who is receiving Medi-Cal and SSI benefits is only allowed to retain $2,000 in personal assets at any one time. A special needs trust, however, allows for financial resources to be set aside to help care for these individuals without counting against the $2,000 cap. However, it’s important to understand the best use of these trusts in order to ensure the special needs individual continues to receive other benefits.
Giving cash directly to the special needs individual is rarely recommended, as anything more than $20 will offset dollar-for-dollar their financial benefits. Funds from trusts also shouldn’t be used to furnish food and/or shelter, as they can also have a negative impact on monthly financial and medical benefits. Typically, the best use of funds from special needs trusts is to purchase things that enhance the experience and quality of life of the individuals, such as televisions, home furnishings, computers, music, supplemental medical or therapeutic care, and travel opportunities.
In California, a disabled person who is receiving Medi-Cal and SSI benefits is only allowed to retain $2,000 in personal assets at any one time. A special needs trust, however, allows for financial resources to be set aside to help care for these individuals without counting against the $2,000 cap. However, it’s important to understand the best use of these trusts in order to ensure the special needs individual continues to receive other benefits.
Giving cash directly to the special needs individual is rarely recommended, as anything more than $20 will offset dollar-for-dollar their financial benefits. Funds from trusts also shouldn’t be used to furnish food and/or shelter, as they can also have a negative impact on monthly financial and medical benefits. Typically, the best use of funds from special needs trusts is to purchase things that enhance the experience and quality of life of the individuals, such as televisions, home furnishings, computers, music, supplemental medical or therapeutic care, and travel opportunities.
