The Flanigan Law Group, A Professional Corporation
Call Our Irvine Office Today
Click Here To Call Now
Local: 949-450-0041
Toll Free: 800-732-2413

New legislation allows easier access to special needs trusts

California residents may have heard that Barack Obama signed the Special Needs Trust Fairness Act into law in December 2016. The new law modifies a rule that says a first-party special needs trust needs to be created by a disabled person's parent, grandparent or guardian. Now, those who are disabled but have the mental capacity to make decisions on their own can create a first-party special needs trust by themselves.

Such a trust is funded with the assets that a disabled person may have had. This allowed them to keep those assets while remaining eligible for government benefits such as Medicaid and SSI. While funds can be used for the general purposes of helping a disabled person, there are restrictions on how the money can be used. For instance, it cannot be used to pay rent or utilities, and it cannot be used to purchase items for anyone other than the beneficiary.

Special needs trusts are legal because the government doesn't want to penalize those who are disabled. Once the trust has been created and funded, an individual can apply for government benefits right way. This provides a disabled individual with the opportunity to get the most from his or her assets without jeopardizing their access to key financial resources.

The use of a special needs trust may help a disabled individual retain access to government benefits without depleting personal assets. An attorney may be able to help an individual create such a trust or review a trust that may already exist. Doing so may increase the odds that it is created in a manner consistent with the law.

No Comments

Leave a comment
Comment Information

Learn How We Can
Help You

Send Us An Email

How May We Help You?Send Us An Email

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

15615 Alton Parkway
Suite 450
Irvine, CA 92618

Toll Free: 800-732-2413
Fax: 949-271-6346
Map & Directions