A pooled special needs trust (PSNT) offers a unique and often advantageous approach to providing for the long-term care of individuals with disabilities without jeopardizing their eligibility for crucial needs-based government benefits like Supplemental Security Income (SSI) and Medi-Cal. These trusts operate by pooling the assets of multiple beneficiaries, reducing administrative costs and allowing for professional management of funds. This is particularly useful for individuals who may not have substantial assets to justify the expense of a fully funded individual trust, or whose families lack the expertise or desire to manage complex financial arrangements. The key benefit lies in preserving access to essential support while enhancing the beneficiary’s quality of life. Roughly 1 in 4 Americans live with a disability, and for many, PSNTs are essential tools for securing their financial future.
Can a pooled trust help with Medi-Cal eligibility?
Maintaining eligibility for government assistance programs like Medi-Cal is paramount for individuals with disabilities, as these programs often cover significant healthcare costs. Assets exceeding a certain limit—currently around $2,000 for SSI in 2024—can disqualify an individual from receiving benefits. A PSNT allows funds to be set aside for the beneficiary’s supplemental needs—those not covered by government programs, such as recreation, travel, or personal care items—without counting toward that asset limit. This is because the trust is considered a “first-party” or “self-settled” trust, meaning the beneficiary’s own funds are used to establish it, but the funds within remain accessible for their benefit without impacting their eligibility. Statistics show that over 61 million adults in the United States live with a disability, highlighting the widespread need for tools like PSNTs to maintain access to crucial resources.
What happens when someone unexpectedly needs a special needs trust?
Old Man Tiberius had always been a pillar of his community, a carpenter with hands that could coax beauty from the roughest wood. Then, a stroke stole his dexterity, and with it, his livelihood. He’d always been fiercely independent, dismissing talk of planning for disability, believing “something like that wouldn’t happen to me.” His adult daughter, Clara, suddenly found herself navigating a complex system of medical bills, insurance claims, and the daunting realization that her father’s savings would quickly be depleted by the cost of his care. Without a properly established trust, those savings would be counted as assets, disqualifying him from essential support. Clara faced the heartbreaking prospect of her father losing access to the care he desperately needed. She sought legal counsel, but the immediate crisis left little room for strategic planning. This scenario is far more common than people realize, with many families finding themselves scrambling to create solutions when a disability strikes unexpectedly.
How does a pooled trust work in practice?
PSNTs are administered by non-profit organizations that specialize in providing trust services for individuals with disabilities. These organizations act as the trustee, managing the trust assets, making distributions for the beneficiary’s benefit, and ensuring compliance with all relevant regulations. Beneficiaries can typically retain some control over how their funds are used, often through an advisory committee or by working directly with the trustee. The pooled aspect means that the administrative costs are shared among multiple beneficiaries, making it a more affordable option than an individual trust. The trustee is legally obligated to act in the best interest of all beneficiaries, providing a layer of oversight and protection. Many PSNTs also offer budgeting assistance and financial education to help beneficiaries manage their funds effectively. “A well-managed PSNT isn’t just about preserving assets; it’s about empowering individuals with disabilities to live fuller, more meaningful lives,” notes Steve Bliss, an estate planning attorney specializing in special needs trusts.
How did things turn out with careful planning?
Years later, young Leo’s mother, Maria, faced a similar challenge when Leo was diagnosed with cerebral palsy. Remembering her grandfather’s struggle, Maria acted swiftly. She consulted Steve Bliss, who guided her through the process of establishing a PSNT for Leo. They carefully funded the trust with a portion of Leo’s inheritance and ongoing contributions from family. The trust allowed Leo to receive the specialized therapies, adaptive equipment, and recreational activities he needed to thrive, all without jeopardizing his Medi-Cal eligibility. He blossomed, participating in adaptive sports, pursuing his passion for art, and developing a strong sense of independence. Maria’s proactive planning not only secured Leo’s financial future but also empowered him to live a life filled with joy, purpose, and dignity. “It’s not about avoiding difficult conversations; it’s about being prepared and ensuring your loved one receives the care and support they deserve,” Maria often says, a testament to the power of thoughtful estate planning.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
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living trust
revocable living trust
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Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “How can I make sure my children are taken care of if something happens to me?” Or “What are the timelines for notifying creditors in probate?” or “Can a trust be challenged or contested like a will? and even: “How does bankruptcy affect co-signers on loans?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.