Special Needs Trusts

By nominating an individual such as a spouse, relative, or close friend as your agent within your AHCD, you entrust them with the authority to navigate health care options on your behalf during moments of incapacitation.

Preservation of Government Benefits: Many governmental assistance programs are need-based, and a direct inheritance could disqualify an individual with special needs from receiving aid. SNTs allow beneficiaries to receive gifts, lawsuit settlements, or other funds without affecting their eligibility.

Management of Resources: SNTs provide a mechanism for managing and protecting financial resources to benefit someone with special needs. These trusts are managed by a trustee, who is tasked with disbursing funds in a way that benefits the beneficiary while complying with the trust's terms and public assistance program rules.

Enhanced Quality of Life: Through an SNT, additional resources can be made available to improve the beneficiary’s quality of life. Trust funds can be used for personal care attendants, out-of-pocket medical expenses, education, transportation, and other life-enhancing expenses, all while maintaining benefit eligibility.

Long-Term Security: An SNT offers a long-term financial solution that serves to provide for the special needs individual's well-being throughout their lifetime, offering families peace of mind.

Flexibility: California allows for both 'first-party' SNTs, which are funded by the assets of the person with a disability (often from an inheritance or settlement), and 'third-party' SNTs, which are funded by someone other than the beneficiary, typically family members planning for the future care of their loved one.

Legal Protection: Given California's complex laws surrounding trusts and benefits, an SNT provides a legally sound instrument that ensures the beneficiary's interests are protected in full compliance with state and federal regulations.