Developmental Disabilities

Down's syndrome, mental retardation, cerebral palsy, muscular dystrophy, Fragile X syndrome, epilepsy and autism are all developmental disabilities that affect many children and their parents. Parents of a developmentally disabled child often worry what will happen to their children after they are gone and planning for their child's care, whether adults or minors, means making decisions that must last for the life of the child.

One of the most effective tools to ensure a developmentally disabled child will have the benefit of the money and assets left to them while still keeping their Supplemental Security Income (SSI) and/or Medi-Cal benefits is a special needs trust. A well drafted special needs trust will ensure professional management of the developmentally disabled child's assets, provide for care management, and regular reviews of the child's life care plan.

The special needs planning process involves a number of important decisions. A trustee who is capable, trustworthy, and will be in place for the life of your child must be chosen. Parents may want to use a trust protector to oversee the trustee or a trustee advisory committee. Determining the most tax advantaged manner to provide for your child is also an important consideration. The answers you choose will vary on the legal, financial and social needs of your child. The Grossman Law Firm can help guide you with the special needs planning process.

Disabled Due to Serious Injury

A permanent, disabling injury has almost as profound an effect on family members as on the disabled person. A previously independent person now has needs for medical treatment, nursing care, attendant care, and various therapies and the cost of these services can be staggering. Most families believe once a settlement or verdict in a personal injury case has been reached that all will be well with the disabled person's finances. If you simply stop with the judgment or settlement, it is very unlikely the disabled person will be made financially whole by such a settlement or verdict.

Very few personal injury attorneys have a full understanding of our tax laws. Even less understand that some of the actions taken to maximize the value of a case result in the judgment or settlement being taxable. Most families don't know whether to take a settlement as cash, an annuity, or some combination of the two. Without professional guidance it is hard to know what will maximize the after tax return on the settlement.

Families also need to know how to plan during the settlement process to fulfill the long deferred needs of the disabled person. A seriously injured person often needs a new home, modifications to that home a wheel chair equipped van and any number of needs that result from the injury. The settlement process should be used to plan for those needs.

Some families are never told to use a special needs trust to hold the proceeds from the judgment or verdict in order to keep their disable family member qualified for SSI and/or Medi-Cal benefits. Getting the largest judgment or settlement is only the first step. Maximizing the benefits of the settlement or judgment is the final goal.

Disability Due to Disease

Some adults contract a disabling disease that leaves them physically infirmed but mentally capable. These people may need to take advantage of public benefits such as SSI and Medi-Cal to pay for their living and medical needs. With the financial qualifications for these programs being so strict, people of even modest means may believe they have to spend themselves into poverty before they can qualify. There is a better way.

The law allows an individual to take their own money (or money they receive as a gift or inheritance) and put it into a special needs trust. The disabled individual can do this on their own if they want to join a pooled special needs trust or they can enlist a trusted family member or friend to assist them in creating their own special needs trust. Once the funds are put into a special needs trust, they are no longer countable when applying for SSI or Medi-Cal and are considered exempt for a person who is already receiving benefits. The money in the special needs trust can be used to pay for the needs of the disable individual as long as Medi-Cal is not already paying for the goods or services.

The Grossman Law Firm’s special needs attorneys serve the San Bernardino, Riverside, and Northern San Diego Counties in California. If you have any questions about special needs trusts or need guidance with the many decisions and obstacles involved in planning for the care of a disabled family member, please contact us through our online form or call The Grossman Law Firm, A.P.C. at (866) 540-0000 to schedule a free 30 minute telephone consultation.