If an individual receives a settlement from a work or personal injury, are no longer able to work and are on government benefits such as, SSI (Supplemental Security Income) and Medicaid (Medi-Cal for California residents) a Special Needs Trust (SNT) is a valuable tool to consider.
Due to government guidelines and regulations, if an individual who receives government benefits and possess assets totaling $2,000 or more his/her public benefits will be in jeopardy.
However, by placing funds in a SNT an individual will legally still be able to remain eligible for government benefits. A SNT supplements what SSI or government benefits do not cover. SSI funds are used for the bare necessities of life such as, food and shelter. We have briefly mentioned that a SNT supplements what government benefits do not provide funds for. You are probably wondering what items does a SNT pay for then? Be on the lookout for our next blog post covering what allowable items a SNT is able to pay for.