Wednesday, January 21, 2015

Administering The California Special Needs Trust


Simple explanations for the use of special needs trusts are laid out here in simple language. The author makes clear that this is not a book of legal advice, but an introduction to the role of the SNT and the roles of the trustee and beneficiary. If you are the parent of an adult with special needs, or the adult son or daughter of elderly parent, the SNT is set up for their financial and/or physical care and you would be the “trustmaker” or “grantor.” The money can then be used for anything the beneficiary needs; food, health care, clothing, furniture, travel expenses, etc.

When it comes to using the money, there is wide leeway on what it can be spent on. However the trustee has fiduciary responsibility for the money, and he/she can get in trouble if the money is misspent or mismanaged. But mistakes can be made, especially when SSI payments are in question. The special needs beneficiary can have SSI payments reduced or Section 8 rent increased if the beneficiary has income. Caregiver expenses may be deductible, but in some cases they are not.

This book isn’t a legal guide, but it’s great if you are going to be the trustee of a SNT and want an overview of what you can expect. In an age when people are living longer than they did 30 years ago, the issue is more important than ever.

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