Special Needs Trusts · Thousand Oaks, California
Provide for them.
Without putting their benefits at risk.
A Special Needs Trust lets you leave an inheritance to a loved one with disabilities while keeping their eligibility for government benefits intact. David Schneider has guided California families through this planning for over 27 years.
Our Clients Share Their Experience
We had an outstanding experience working with DRS Law and David Schneider (David) on our estate planning. From the very beginning, David took the time to educate us on what an estate is and explained all the associated terminology in a way that was easy to understand. His thorough approach made us feel both comfortable and confident throughout the entire process.
After preparing our estate, he carefully reviewed it with us page by page, ensuring that all our questions were answered. His patience, professionalism, and dedication to making sure we fully understood everything were truly impressive.
If you are considering estate planning, we highly recommend DRS Law. David and his team provide exceptional service, making what can feel like a complicated process smooth and stress-free. We are grateful for their guidance and expertise!
Client experiences reflect individual circumstances. Past results do not guarantee similar outcomes.
Protecting an Inheritance, and the Benefits That Come With It
A problem which many families face today is how to pass an estate when a beneficiary may have special needs or disabilities which prevent that beneficiary from being able to manage such a gift for themselves. In many instances, beneficiaries who are currently benefitting from one or more governmental resources would lose such benefits if they were suddenly to inherit from their parents or grandparents.
In these instances, we recommend the use of a Special Needs Trust for the beneficiary. This type of trust withholds the distribution from the beneficiary, so no governmental source may claim that the beneficiary actually has possession or ownership of the property.
Planning That Reaches Across Generations
This planning is important on a multi-generational level. The following scenario has come up in practice more than once.
A Real Scenario
When a Trust Written Years Ago Meets a Family That Has Changed
The Settlor of the trust has two children, one of whom has a special needs child. The Settlor simply leaves their estate to be divided equally between their two children, but unfortunately one of their children pre-deceases them, the child with the special needs grandchild.
Since the Settlor’s trust was written prior to the birth of the special needs child, the grandchildren of their deceased child inherited equally. The special needs child had all his inheritance go to the state for reimbursement, and the child no longer qualified under the programs he presently enjoyed.
Three Things a Special Needs Trust Does
A Special Needs Trust is a legal arrangement that allows you to leave assets to a family member with disabilities without jeopardizing their government benefits.
Keeps Assets Separate
The trust holds the inheritance rather than the beneficiary, so the assets are not counted as the beneficiary’s personal resources.
Preserves Eligibility
The beneficiary remains eligible for programs such as SSI, Medi-Cal, and other support systems including housing and food assistance.
Appoints a Trusted Manager
A trustee with the beneficiary’s best interests in mind uses the funds for supplemental needs, so the inheritance enhances rather than compromises their support.
At The Law Offices of David R. Schneider, APC, we address your family’s unique circumstances, helping you establish a Special Needs Trust tailored to your loved one’s needs.
WITH AND WITHOUT A TRUST
What Happens to a Direct Inheritance
The difference is not the size of the gift. It is how the gift is held.
Inheriting Directly
- Inherited assets are counted as the beneficiary's own resources.
- Government benefits may be lost.
- The inheritance is spent down on basic care until the funds are depleted.
- The beneficiary must then requalify for assistance, potentially facing gaps in crucial services.
Inheriting Through a Special Needs Trust
- Assets are held by the trust, not owned by the beneficiary.
- Eligibility for government programs is maintained.
- A trustee uses the funds for supplemental needs beyond what benefits cover.
- The inheritance lasts, and it works alongside the existing support system.
Our Approach
We believe our clients may not always know what questions to ask. It’s our responsibility to ensure all your concerns are addressed, even those you may not think to ask. Our personalized approach guarantees that every aspect of your estate planning is meticulously covered.
Direct Attorney Access
Every client works with David Schneider personally for all legal matters, never passed off to a paralegal or associate.
California-Wide Probate
We handle probate proceedings throughout California via remote court appearances, saving you travel, time, and money.
Educational Approach
“It is impossible to know what you do not know.” David takes the time to explain so you can make fully informed decisions.
Frequently Asked Special Needs Trust Questions
What is a Special Needs Trust and why would my family need one?
A Special Needs Trust is a legal arrangement that allows you to leave assets to a disabled family member without jeopardizing their government benefits. It works by keeping inherited assets separate from the beneficiary’s direct ownership, ensuring they maintain eligibility for crucial government assistance programs while still benefiting from their inheritance. While not limited to, a Special Needs Trust is most commonly used for persons who are developmentally disabled.
How does a Special Needs Trust protect government benefits?
A Special Needs Trust protects benefits by preventing inherited assets from being counted as the beneficiary’s personal resources. The trust is managed by a trustee who can use the funds for supplemental needs while keeping the beneficiary eligible for programs like SSI, Medi-Cal, and other support systems such as housing and food assistance programs. This arrangement ensures the inheritance enhances rather than compromises their support system.
What happens if I do not set up a Special Needs Trust before passing assets to a disabled beneficiary?
Without a Special Needs Trust, a disabled beneficiary who inherits assets directly may lose their government benefits and have to use their inheritance to pay for basic care until the funds are depleted. Once exhausted, they would need to requalify for government assistance, potentially facing gaps in crucial services and support.
When is the best time to set up a Special Needs Trust?
The best time to set up a Special Needs Trust is as soon as you know you have a disabled beneficiary who might inherit assets from you. Early planning prevents scenarios where an unexpected death leads to direct inheritance that compromises benefits. Regular review and updates ensure the trust continues to meet changing family circumstances and legal requirements.
Integrity and Experience at the Core of Our Legal Services
With decades of professional experience, David R. Schneider, APC blends deep community ties with a wealth of experience. From running a successful business to excelling in the legal field with top grades and honors, David’s extensive knowledge ensures comprehensive and trusted legal support. His lifelong commitment to the Conejo Valley and its residents is your assurance of reliable and heartfelt service. Choose a legacy of excellence for your legal needs.