Los Angeles Special Needs Trust Attorney
Providing for a Loved One Without Losing Public Benefits
A special needs trust allows you to leave money or property to a loved one with a disability without disqualifying them from means-tested public benefits such as Supplemental Security Income (SSI) and Medi-Cal. Because these programs impose strict asset and income limits, an inheritance received directly, even a modest one, can suddenly cut off benefits that a family member depends on for medical care and daily support.
The Law Office of Mitchell A. Port drafts special needs trusts for Los Angeles families who want to enhance a loved one's quality of life without putting essential government benefits at risk.
First-Party vs. Third-Party Special Needs Trusts
A third-party special needs trust is funded with assets that never belonged to the beneficiary, typically from a parent or grandparent as part of their own estate plan. This is the most common type we prepare, and it does not require any payback to the state upon the beneficiary's death. A first-party special needs trust, by contrast, is funded with the beneficiary's own assets, often from a personal injury settlement or an inheritance received before proper planning was in place. First-party trusts must include a Medi-Cal payback provision, meaning the state is reimbursed for benefits paid before any remaining funds pass to other beneficiaries.
What the Trust Can and Cannot Pay For
A special needs trust is designed to supplement, not replace, public benefits. It can typically pay for things SSI and Medi-Cal do not cover, such as therapies, specialized equipment, education, travel, and recreational activities, while avoiding direct cash distributions or payments for basic food and shelter that could reduce SSI eligibility. Selecting a trustee who understands these rules, or who works closely with a professional fiduciary or special needs planning attorney, is essential to avoid inadvertently jeopardizing benefits.
Coordinating With ABLE Accounts
For beneficiaries with a disability that began before age twenty-six, a California ABLE account can serve as a useful companion to a special needs trust, allowing smaller amounts of savings to be held directly in the beneficiary's name without affecting benefits eligibility, up to certain limits. We help families understand how a special needs trust and an ABLE account can work together as part of a broader plan.
Frequently Asked Questions
Who should I choose as trustee of a special needs trust?
The trustee needs a clear understanding of public benefits rules, since an improper distribution can jeopardize the beneficiary's eligibility. Many families choose a professional fiduciary or corporate trustee, sometimes paired with a family member serving in an advisory role.
Can I set up a special needs trust for an adult child who is already receiving SSI?
Yes. It is common, and often urgent, to set up a third-party special needs trust for an adult child already receiving benefits, particularly before a parent's own estate plan would otherwise leave assets to that child outright.
Call (310) 526-3433 to protect a loved one's benefits with a special needs trust from the Law Office of Mitchell A. Port.
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"I highly recommend Mitchell A. Port"Living outside California, I needed an attorney from the Los Angeles area to handle my difficult LA Probate case. I went online and fortunately found a very experienced Probate Attorney in LA named Mitchell A. Port. Mitchell took my Probate case and did an excellent job helping me navigate through the intricacies of the LA Court Probate system. He quickly responded to any questions I had and was extremely knowledgeable about the steps required to complete the entire Los Angeles County Probate process. I highly recommend Mitchell A. Port to handle any of your future needs concerning the LA Court Probate system.- Randall
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"Knowledgeable, Personable and Results-oriented"Mitch is a great attorney - knowledgeable, personable and results-oriented. He helped me work through a challenging probate issue and his expertise was invaluable in terms of moving the case forward. Two thumbs up and five stars from me.- Jason
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"My brother and I have been so fortunate that my father chose Mitch Port to create his Trust!"My brother and I have been so fortunate that my father chose Mitch Port to create his Trust!- Cathy W
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Mitch is compassionate, extremely knowledgeable and professional
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"Mitch was awesome throughout this entire process and made this a stressless process."Mitch was awesome throughout this entire process and made this a stressless process.- M. C.
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"Probate cases can be difficult but attorney Mitchell Port makes them easier to understand."Probate cases can be difficult but attorney Mitchell Port makes them easier to understand.- Glendene W.
