A Special Needs Trust (SNT) is a legal tool—often irrevocable—that holds funds for a person with disabilities without disqualifying them from government programs like SSI or Medi‑Cal. If assets passed directly to the individual, they could exceed eligibility limits. A properly drafted SNT preserves benefits while enhancing their quality of life.

• First‑Party SNT: Funded by the disabled individual’s own assets (e.g., inheritance or settlement); must be under age 65 and include Medicaid payback.

• Third‑Party SNT: Funded by someone else (e.g., parents); avoids payback and is often established for long-term planning.

• Pooled Trust: Managed by a nonprofit, where individual accounts benefit from shared administration; available at any age.

Ideally well before the individual turns 65. Early planning, whether the beneficiary is a baby or adult, ensures that any future assets (like gifts or inheritance) can be deposited into the trust immediately, without jeopardizing public benefits.

Yes, technically a beneficiary can establish their own SNT under § 1396p(d)(4)(A), but that typically disqualifies them from managing it. Most families, especially parents or guardians, establish trusts for the beneficiary to maintain control and oversight.

Permitted expenses include medical or dental care not covered by Medi‑Cal, assistive technology, education, transportation, therapies, personal care, and enriching experiences like hobbies or community programs. It must supplement, not replace, what public benefits provide.

Yes. While state benefits like Medi‑Cal or regional center services provide key support, planning legally gives you a way to enhance your loved one’s care without unintentionally disqualifying them. The Lanterman Act (California) ensures rights and services, but a well-designed SNT allows you to go further—providing quality-of-life enhancements and financial protection alongside those benefits.