Murrieta Special Needs Planning Attorney

Murrieta Special Needs Planning Lawyer

If you or a loved one lives with a major physical or mental disability, it’s crucial that you consider planning for the future of your estate and continuing to qualify for necessary government assistance. One of the primary ways to do this is by establishing a trust most suited to your unique situation, which a skilled Murrieta special needs planning attorney can assist you with. Consider going to Goebel Estate Planning, PC, led by experienced attorney Hillary Goebel.

Understanding Estate Law and What a Trust Is

Estate law concerns a person’s estate and how they wish their assets or dependent family members to be taken care of upon their death or incapacitation. Estate planning typically includes a will, which outlines a person’s wishes regarding their estate and the distribution of their assets.

Another major aspect of estate law is creating and managing trusts. In California, there are various types of trusts a person may utilize. Trusts are an important estate planning tool that allows a person to transfer certain properties and assets, which may be exempt from the same procedures required for those in a will.

The defining difference between a will and a trust is that trusts are not subject to probate. When a person dies with a will, that will must go through probate to verify its authenticity and applicable assets. Probate can often be a costly and time-consuming process. By utilizing a trust, the assets placed within it can avoid probate and are automatically distributed to the trust’s beneficiaries.

What Is a Special Needs Trust in California?

A special needs trust allows for many of the same benefits as other trusts, such as avoiding probate fees and allowing beneficiaries to receive assets more readily. However, a special needs trust works a bit differently than other trusts to better serve you and your estate.

Since individuals with disabilities or special needs frequently require the assistance of government programs to survive, it’s important to ensure that you or a disabled relative continues to qualify for federal assistance even after their primary provider isn’t around. Despite someone relying heavily on these income-based programs, inheriting assets from an estate can potentially disqualify them.

By establishing a special needs trust, the funds and properties placed within the trust are exempt from being considered as part of a person’s assets by the government, which would potentially disqualify the disabled individual from receiving benefits. It’s also a good idea to create a trust since federal disability benefits are often not enough to sufficiently support someone with special needs.

Types of Special Needs Trusts in Murrieta, CA

Similar to a standard living trust, special needs trusts can also allow the grantor (owner) or the trustee (manager), if they are different people, to distribute assets to the beneficiary while the grantor is still alive. There are two main forms of special needs trusts: self-funded and third-party.

A self-funded trust is established and funded by the disabled individual themselves while under the age of 65. This type of trust can also be established on behalf of someone by a parent, their conservator, or the court. It’s possible for someone over the age limit to create this type of account through a “pooled trust,” but they function much differently. You can speak with a Murrieta Special Needs Planning Attorney about what options may be ideal for you.

A third-party special needs trust is one where the funds are provided by a family member, friend, or caregiver of the disabled individual. The money placed into the trust may be from an inheritance, life insurance policies, regular income, or various other sources. The beneficiary of a third-party trust cannot put their own assets into the account.

FAQs About Murrieta, CA Special Needs Planning Laws

Q: What Are the Benefits of a Special Needs Trust in California?

A: There are multiple benefits of special needs trusts to consider. Like a standard trust, special needs trusts avoid probate, protecting the assets from being used to settle financial obligations or pay court fees. Instead, more of the trust’s funds can be distributed directly to the beneficiary.

The other main benefit of special needs trusts is that the disabled beneficiary is much less likely to be deemed ineligible to receive government benefits since the trust’s funds are not counted toward their income.

Q: Are Special Needs Trusts Revocable or Irrevocable in CA?

A: In Murrieta and California, a special needs trust can either be revocable or irrevocable, depending on the specific needs of the beneficiary. A revocable trust account can be modified or revoked at any point by the trust’s creator. An irrevocable trust, however, cannot be changed once it is established. This means the grantor of the trust no longer has control of the assets once they’ve been placed into the trust.

Q: Are There Downsides to a Special Needs Trust in California?

A: As with any legal option, there are some potential disadvantages in obtaining a special needs trust. For example, the main downside is that the beneficiary of a special needs trust doesn’t have control over the funds.

Instead, they have to make a request through their trustee, who manages the account. This can be frustrating, restrictive, and inconvenient at times. Another con of some special needs accounts is that Medicaid requires they be paid back after the beneficiary passes away.

Q: Do I Need an Attorney to Create a Special Needs Trust in CA?

A: In California, you are not legally required to work with an attorney to create a special needs trust; however, it is highly recommended that you consult with a qualified and experienced estate law attorney when preparing for special needs planning. It’s easy to make a mistake in the challenging legal area of special needs planning and trusts. To avoid creating a trust that may be invalidated, fined, or penalized, allow a trusted attorney to help.

Go to Goebel Estate Planning for Special Needs Trusts and Planning

Don’t hesitate to schedule an initial consultation with attorney Hillary Goebel today. She has years of extensive experience creating special needs trusts for her clients. Hillary Goebel can provide numerous resources, insightful counsel, and a wealth of knowledge as an accomplished estate law professional.