Posted by Katherine A. Montgomery under
losr Special Needs Trust
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Special Needs Trust, sometimes called a supplemental needs trust, is a trust that is created and designed to hold property of beneficiaries who are disabled or mentally ill so they can enjoy the use of the property and still qualify for needs-based public benefits. Supplemental Security Income (SSI) and Medicaid (which in California is called “Medi-Cal”) are the more common needs-based public benefits which Special Needs Trusts are created to protect.
A key to maintaining eligibility for needs-based public benefits is that the beneficiary cannot have control over the assets in the Special Needs Trust (SNT). The beneficiary cannot manage the assets, has no right to demand receipt of income or property from the SNT, and has no power to name the manager of the trust (known as the trustee) or to change the terms. The use of the SNT’s assets for the benefit of the beneficiary is determined at the discretion of the trustee of the SNT. The trustee can be a family member, friend, or private professional trustee.
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