Special Needs Trust and CalABLE

CalABLE officially launched on December 18th, 2018. With this program in place qualified Californians with disabilities who rely on programs which have traditionally capped their available assets at extremely low amounts can open up tax free savings accounts and begin saving for life’s inevitable rainy days.

CalABLE Savings Program for People with Disabilities
To learn more or enroll in CalABLE visit the California State Treasurers website. (please make “California State Treasurer’s website a link to https://www.treasurer.ca.gov/able/).

What is an Estate Planning Special Needs Trust?

A Special Needs Trust is a special trust that holds title to property for the benefit of a child or adult who has a disability without interfering with eligibility for public benefits. The Special Needs Trust can be used to provide for the needs of a person with a disability and supplement benefits received from various governmental assistance programs, including SSI and Medi-Cal. A trust can hold cash, real property, personal property and can be the beneficiary of life insurance policies.

Who can establish aSpecial Needs Trust?

Parents (or other family members or friends) of a disabled person can establish a Special Needs Trust as part of their estate plan. The parents or loved one can “pour-over” the person with a disability share of their estate into the special needs trust and remain assured that they will have funds available to provide for his or her needs that are not covered by government benefits, even after their deaths.

What assets can be used to fund the Trust?

Almost any type of asset can be held by the trust including cash, securities, real or personal property and life insurance proceeds. Very often, a trust has no assets until the death of the Settlor (a testamentary trust) or the trust can be set up now (an inter-vivos trust).

Who will manage theTrust assets?

The manager of a trust is called a “trustee.” The trustee can be any person over eighteen years of age, a family or friend, bank, pooled trust or a professional fiduciary.The trustee holds, administers and distributes all property allocated to the trust for the benefit of the disabled person during his or her lifetime.

Where can I find an knowledgeable about Special Needs Trust attorney?

Almost any estate planning attorney has the ability to create a special needs trusts, but few have a great deal of experience with laws and regulations that affect the creation and administration the trust. a good source of finding a knowledgeable special needs trust attorney is the Special Needs Alliance. To find an attorney in your location, go to www.specialneedsalliance.org