Every family wants to ensure their loved ones are cared for, but when a child or relative has special needs, planning takes on even greater importance. In Anaheim, many families rely on public benefits to cover medical care, housing, and daily support. Without careful planning, an inheritance or financial gift could unintentionally put those benefits at risk. By setting up the right legal protections, you can provide financial security without disrupting the assistance your loved one depends on. A well-structured plan offers stability and peace of mind for the future.
Why Special Needs Estate Planning Matters
Providing for a loved one with special needs requires more than just financial support—it requires planning that protects their long-term stability. Many individuals with disabilities in Anaheim rely on government programs like Supplemental Security Income and Medi-Cal for medical care, housing, and daily necessities. These programs have strict income and asset limits, meaning a direct inheritance could cause unintended consequences, such as disqualification from benefits.
With a proper estate plan, you can leave financial resources without putting public assistance at risk. Special Needs Trusts (SNTs) allow funds to be set aside specifically for your loved one’s needs while keeping them eligible for government support. Beyond financial security, planning also ensures that a responsible person will manage assets. By taking these steps, you can create a reliable support system that continues long after you are gone, giving your loved one a more secure future.
Special Needs Trusts: A Key Tool
A Special Needs Trust is one of the most effective ways to financially support a loved one with disabilities while protecting their access to government benefits. Instead of leaving assets directly to the beneficiary, funds are placed in the trust and managed by a trustee. This allows your loved one to receive financial support for expenses beyond what government programs cover, such as:
- Medical treatments and therapies not covered by insurance
- Assistive technology and mobility aids
- Education and training programs
- Recreational activities and travel
There are different types of Special Needs Trusts, each serving a unique purpose:
- First-Party SNT: Funded with the beneficiary’s own assets, often from an inheritance or legal settlement.
- Third-Party SNT: Created by parents or family members to provide long-term financial support.
- Pooled Trusts: Managed by nonprofit organizations, offering professional oversight for multiple beneficiaries.
Setting up the right trust ensures financial stability while keeping benefits intact.
Choosing a Trustee for a Special Needs Trust
Selecting the right trustee for a Special Needs Trust is an important decision that affects your loved one’s long-term financial security. The trustee manages trust assets, approves distributions, and ensures funds are used in a way that does not interfere with government benefits.
Options include a trusted family member, a professional fiduciary, or a corporate trustee. Some families choose co-trustees to balance financial expertise with personal involvement. The right choice depends on the complexity of the trust and the beneficiary’s ongoing needs.
ABLE Accounts: Another Planning Option
An Achieving a Better Life Experience (ABLE) account offers another way to provide financial support for a loved one with disabilities while preserving government benefits. These tax-advantaged savings accounts allow individuals with disabilities to save money without affecting their eligibility for programs like SSI and Medi-Cal.
Funds in an ABLE account can be used for a wide range of expenses, including housing, education, assistive technology, and healthcare. Unlike a Special Needs Trust, the beneficiary has direct control over the account. While ABLE accounts have contribution limits, they can be a valuable tool when used alongside a well-structured estate plan.
Other Estate Planning Considerations
A strong estate plan does more than protect financial assets—it ensures that your loved one’s needs are met in every aspect of life. In Anaheim, families with a special needs beneficiary should consider additional legal tools to provide long-term security and guidance.
- A will – Specifies how your assets will be distributed and can name a guardian if the beneficiary is a minor.
- A letter of intent – Provides instructions on your loved one’s care, medical history, and daily routines to guide future caregivers.
- Powers of attorney – Designates someone to make financial and healthcare decisions if needed.
- Life insurance – Can fund a Special Needs Trust to ensure financial stability.
Keeping these documents updated is just as important as creating them. A well-rounded plan brings clarity and reassurance, helping your loved one maintain a high quality of life.
Contact Our Experienced Anaheim, CA Special Needs Estate Planning Attorneys
At OC Wills & Trust Attorneys, we understand the importance of protecting your loved one’s future while preserving their eligibility for benefits. Families in Anaheim trust us to create estate plans that provide financial stability and long-term security for individuals with special needs. From Special Needs Trusts to ABLE accounts and other legal tools, we take a thoughtful approach to ensure your loved one receives the care and support they need without unnecessary complications or financial setbacks. Contact us today to discuss your options and take the next step in securing your family’s future.
With offices in Irvine, Huntington Beach, and Anaheim, OC Wills & Trust Attorneys also serves clients throughout Southern California, including Mission Viejo, Huntington Beach, Costa Mesa, Seal Beach, Long Beach, Fountain Valley, Newport Beach, and the greater Orange County area.
