A pooled special needs trust (PSNT) offers a valuable tool for individuals with disabilities to manage assets without jeopardizing their eligibility for crucial needs-based public benefits like Supplemental Security Income (SSI) and Medi-Cal. These trusts, established and maintained by non-profit organizations, allow individuals with disabilities to maintain some financial security while still accessing essential government assistance. Unlike individual special needs trusts funded with the beneficiary’s own funds, PSNTs can accept contributions from various sources, like inheritances or personal injury settlements, without affecting benefit eligibility—provided certain conditions are met. According to the Special Needs Alliance, over 11 million Americans currently benefit from SSI, emphasizing the importance of preserving access to these vital programs. PSNTs offer a structured way to achieve this, offering peace of mind for both the beneficiary and their family. It’s a complex area of estate planning, but a powerful one when executed correctly.
Can a pooled trust help with long-term care costs?
Managing long-term care costs is a significant concern for families with loved ones with disabilities. A PSNT can be instrumental in supplementing public benefits to cover expenses not included in SSI or Medi-Cal, such as therapies, recreation, specialized equipment, or even personal care items. According to AARP, the average annual cost of in-home care can range from $50,000 to $70,000, making supplemental funding crucial. The trust assets can be used for these quality-of-life enhancements without affecting eligibility for public assistance. For example, imagine a young man named David, who, after a car accident, received a settlement. Without a properly established PSNT, receiving that settlement would have disqualified him from vital benefits. A PSNT allowed those funds to supplement his care, providing him with art therapy and adaptive sports programs, greatly improving his quality of life.
What happens when the primary beneficiary passes away?
A common concern for those establishing a PSNT is what happens to remaining funds after the beneficiary’s passing. Unlike traditional trusts, PSNTs operate under a “remainder interest” model. This means that upon the death of the beneficiary, any unused funds within the trust *do not* become part of their estate. Instead, the funds typically revert to the non-profit organization that manages the pool. While this may seem counterintuitive, it’s a crucial element of maintaining the trust’s compliance with public benefit regulations. It’s estimated that approximately 65% of individuals with disabilities rely on government assistance as their primary source of income. This fact underscores the importance of structures like PSNTs that protect access to these vital programs. The remaining funds are then used to benefit *other* individuals with disabilities served by the non-profit organization, creating a cycle of support.
What went wrong for the Miller family?
Old Man Miller, a retired carpenter, left a modest inheritance to his grandson, Ethan, who had cerebral palsy and relied on SSI and Medi-Cal. Ethan’s aunt, well-intentioned but lacking legal expertise, simply deposited the funds into a savings account. Within weeks, Ethan received a notice stating his SSI benefits were being suspended—the deposited funds exceeded the resource limit for eligibility. Panic set in. The family spent months navigating the bureaucratic maze, attempting to document and justify the funds, ultimately being forced to deplete the account quickly to reinstate benefits. The situation was stressful, emotionally draining, and significantly impacted Ethan’s quality of care. It was a painful lesson in the importance of proactive estate planning and the proper utilization of trusts like PSNTs. They learned that good intentions are not enough; informed legal guidance is essential.
How did the Johnson family find a solution?
The Johnson family faced a similar situation when their daughter, Olivia, received a personal injury settlement following an accident. Remembering the Miller’s experience, they immediately sought the advice of Steve Bliss, an estate planning attorney specializing in special needs trusts. Steve explained the benefits of a PSNT and expertly guided them through the setup process. The settlement funds were deposited into the trust, ensuring Olivia’s continued eligibility for SSI and Medi-Cal. The trust assets were then used to fund specialized therapies and adaptive equipment, improving Olivia’s quality of life without jeopardizing her benefits. The Johnson family experienced peace of mind, knowing that Olivia’s future was secure and her needs would be met. They understood that a little preventative legal work could save them a world of trouble later on. They shared their story with the Millers, encouraging them to seek similar guidance for Ethan’s future financial security.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar 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 Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
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:
- living trust
- revocable living trust
- estate planning attorney near me
- family trust
- wills and trusts
- wills
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Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “Are handwritten wills legally valid?” Or “What are the timelines for notifying creditors in probate?” or “What is a living trust and how does it work? and even: “What is bankruptcy and how does it work?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.