016: How a Special Needs Trust Protects Your Child’s Government Benefits in California

Today on Legacy Protected, DeDe Soto breaks down one of the most misunderstood tools in family planning: the special needs trust. For parents of children with disabilities, a standard will is not just insufficient, it can strip a child of critical government benefits like SSI and Medi-Cal the moment an inheritance lands in their name. DeDe explains exactly how a properly structured special needs trust keeps those benefits intact while still allowing families to provide for their child’s quality of life, from dental care to Disneyland passes.

DeDe covers first party versus third party trusts, the California-specific rules around limited conservatorship, what happens to the trust after a parent passes, and why DIY planning in this area carries serious consequences.

If you have a child with special needs and assets to leave behind, this conversation belongs at the top of your list.

In this episode, you will hear:

• Why a standard will can disqualify a special needs child from SSI and Medi-Cal the moment they inherit
• First party vs. third party special needs trusts and how to know which one a family actually needs
• How the trust pays vendors directly, keeping funds out of the beneficiary’s control and benefits intact
• What California’s limited conservatorship covers and why it needs to be in place before a child turns 18
• The risks of leaving money directly to a special needs child in a relative’s will or life insurance policy
• Why DIY special needs trusts routinely fail and what “secret sauce” language makes them legally sound
• The letter of intent and why every special needs trust should have one

Resources from this Episode

https://www.thesotolawgroup.com/estate-planning-wills-and-trusts/special-supplemental-needs-trusts

https://www.thesotolawgroup.com/contact-us-newport-beach-lawyers

Phone: 949-629-4569

Address:

The Soto Law Group
4041 MacArthur Boulevard, Suite #200
Newport Beach, CA 92660

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