QUESTION

Do I need a special needs trust,? Ive recently inherited 50,000 from my aunt. And I am on disability, and medicaid.

Asked on Nov 15th, 2020 on Trusts and Estates - California
More details to this question:
I am depend on three different government programs for the rest of my life, how do I begin the process of a special needs trust ?
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1 ANSWER

Estate Planning Attorney serving Woodland, CA
Partner at Sonin Law
3 Awards
Disability is not means-tested. Medi-Cal is means-tested. Being means-tested means that you can't (in most cases) have more than $2,000. I say "in most cases", because there's also MAGI Medi-Cal, which is based only on your income, not your assets. To be cautious, assume your Medi-Cal is means-tested, and get the inheritance out of your bank account ASAP. It costs $2500-3500 for an attorney to draft a special needs trust. Because of that, we hesitate to do a special needs trust for that amount of inheritance. You could do a spend-down: paying for things that wouldn't affect your Medi-Cal. You could upgrade your car, pay for car insurance, pre-pay several months of call phone service and/or cable TV, pay off a credit card if you have one, buy a better bed or recliner. Because you're on disability, not SSI, you could also pre-pay some rent or utilities expenses. If we weren't stuck at home due to Covid, you could even go on a vacation.
Answered on Nov 16th, 2020 at 10:59 AM

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