Special Needs Trusts in the Culver City, CA area

A Special Needs Trust (SNT) is designed to preserve trust assets for the special needs of a disabled beneficiary without jeopardizing the beneficiary's public assistance benefits.

The purpose of a SNT is to protect a beneficiary's eligibility to receive government benefits (such as SSI and Medi-Cal) and still allow the beneficiary to benefit from the assets in a SNT. Thus, the SNT can provide for things not paid for by the government, such as a specially equipped van, additional medical care, a motorized wheelchair, vacations or entertainment.

1. Discretionary Distributions: The trustee's payment for the special needs of the beneficiary must be discretionary; the payments cannot be mandatory. Careful planning and legal advice is important to guide the trustee and to prevent inadvertent disqualification from public benefits.
2. Examples of Special Needs: Special needs which can be paid for by the SNT include: entertainment, recreation, movies, vacations, specially designed equipment for the beneficiary and medical costs not covered by Medi-Cal.
3. Income Tax: A SNT is irrevocable and will have its own individual tax identification number; the trustee will submit annual fiduciary tax returns and taxes will be paid out of the SNT.