San Diego, California has many residents who need a self funded special needs trust. A self funded special needs trust is a legal document that provides for distribution and control of assets. These assets may be in the form or real estate, business interests, stocks, bonds, money or other specific types of assets. A trust will provide how these assets will be controlled and distributed during a person’s life and also for distribution after death.

A special needs trust is one in which a person with disabilities can help to protect assets. A special needs trust may be set up by another person with a disability to contain a gift or inheritance. A self funded special needs trust is a type of special needs trust in that the trust contains assets that had belonged to the person with a disability who is also the beneficiary of the trust. The purpose of the self funded special needs trust is to have the funds be used to supplement, but not to replace, government benefits. The self funded special needs trust may be managed by the trustee as with a special needs trust.

Rules and regulations for public benefits in San Diego, California are very complex and trusts of this type will also involve tax issues so a licensed Certified Public Accountant will be utilized in many cases. Our firm can refer you to a competent and licensed professional who can advise on the tax implications while our firm can advise on the legal issues. It is also very important to consider who will administer this self funded special needs trust.

It is crucial that the self funding special needs trust be properly funded and established. In addition, the trustee must be adhere to the legal standards of being a trustee and not improperly spend the spend the income or principal of the trust. The trustee also needs to be in contact with the accountant for tax ramifications of any disbursements. The trustee should also be knowledgeable regarding the legal standards for the creation and maintenance of the trust records and accountings as well as the standards for the prudent investor. In addition, the trustee needs to be aware that the assets of the self funded special needs trust should only be used to purchase for benefits which cannot be purchased with public benefits. This is an extremely complicated area of the law and competent and experienced legal advice is required to insure that all requirements of the law are being met.

In a self funded special needs trust, individuals with disabilities are often receiving governmental benefits and assistance such as supplemental security income [SSI] or Medicaid. In cases in which an individual who is receiving government benefits and assistance also receives money from another source, the benefit and assistance from the government may be in jeopardy. There are also other factual situations in which this may occur such as when there is an inheritance, personal injury settlement or social security back payments. The self funded special needs trust places these assets not in the name of the person but in the name of the self funded special needs trust.

The attorneys at the San Diego estate planning firm of Pinkerton, Doppelt & Associates LLP have extensive experience in special needs trust issues. We welcome your inquiry and invite you to contact us by e-mail, or call us toll-free at (877) 435-7411 within California, or (858) 618-5510 outside of California to schedule a free consultation.