How to Create a Special Needs Trust for Your Loved One in Palm Springs

When you care for a child or loved one with a disability, their future is always on your mind. You may wonder how to ensure they’ll have the support, independence, and quality of life they deserve, especially when you’re no longer there to provide it. A special needs trust offers a way to protect their financial future while preserving eligibility for essential government benefits.

At Heritage Legal, PC, we’ve worked with many families in Palm Springs who are trying to plan wisely and compassionately. If you’re ready to put something in place that brings peace of mind, we’re here to help you get started.

What a Special Needs Trust Does

A special needs trust holds money or property for the benefit of someone with a disability. It’s set up so that your loved one can still qualify for public benefits like Supplemental Security Income (SSI) and Medi-Cal, which have strict income and asset limits. The trust pays for additional expenses that improve your loved one’s quality of life, without disqualifying them from support.

Here are just a few examples of what a special needs trust can cover:

• Educational programs or job training

• Medical treatments not covered by insurance

• Therapies or adaptive equipment

• Vacations and entertainment

• Housing support, depending on how the trust is structured

This kind of planning isn’t just about money—it’s about giving your loved one the fullest life possible.

Types of Special Needs Trusts to Consider

There are different ways to set up a special needs trust, depending on where the funding is coming from and how you want it managed:

• First-Party Trust
  Funded with the beneficiary’s own money, such as a legal settlement or inheritance. Federal law requires that any funds left over when the person passes away must be paid back to the state.

• Third-Party Trust
  Created and funded by someone else—usually a parent or grandparent—as part of an estate plan. These don’t require payback to the state.

• Pooled Trust
  Managed by a nonprofit organization that combines funds from multiple individuals. Each person still has their own account. This may be a good option if a private trustee isn’t available or if the trust fund is small.

Choosing the right trust depends on your family’s needs. We’ll walk through those details with you so you feel confident about the path forward.

Steps to Create a Special Needs Trust in Palm Springs

The process isn’t as complicated as you might think, especially with the right legal guidance. Here’s how we help clients set one up:

1. Define the purpose and your loved one’s needs. Every person is different. We begin by talking through what your loved one needs now and what they may need down the road.

2. Decide which type of trust makes sense. We’ll talk about where the money is coming from, who should benefit, and what kind of flexibility you want.

3. Choose a trustee. This person or institution will manage the trust, handle distributions, and keep records. Some families pick a trusted relative. Others choose a professional fiduciary. We’ll help you weigh the options.

4. Draft the trust document. This legal document outlines the terms of the trust. It must follow California and federal rules so your loved one keeps their eligibility for public benefits.

5. Fund the trust. The trust can be funded during your lifetime, at your passing, or both. You can use life insurance, savings, or even gifts from relatives.

6. Keep it up to date. We encourage periodic reviews. As your loved one’s situation changes, your plan should reflect that.

Throughout the process, we’ll answer your questions and make sure everything is set up correctly. We want you to feel supported every step of the way.

Why Local Guidance Matters in Palm Springs

Working with a local special needs planning attorney offers more than convenience. We know how special needs trusts work here in California, and we understand the local programs and court procedures that may come into play. Many of our clients live right here in Palm Springs or throughout the Coachella Valley. They come to us because they want a relationship with someone who understands this community and can offer personalized advice. We’re proud to be that resource.

Supporting Your Loved One Starts Here