The main functions of a Special Needs Trust ("SNT") in obtaining a disabled individual would be to stop the waste of resources and to provide adequate care of these resources. Public benefits from Social Security Income and state-paid health care are provided based on the needs of senior law In Attorney & Mesa who are unable to earn money for themselves due to a disability.
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Money that is distributed directly to a person with a disability reduces these public benefits dollar for dollar. A properly managed and prepared SNT is a valid and legitimate tool under Social Security rules and legislation.
Safeguard Payment of Medical Costs (Medi-Cal) Medi-Cal is California's version of this federally funded Medicaid program. The program offers health benefits for people with medical needs. Medi-Cal eligibility is not required for the disabled who receive Social Security Income. If income is less than Medi-Cal limitations, Medi-Cal providers are offered at no cost.
Typically, the only real source of income for the disabled is SSI. The SSI income that disabled people receive is significantly less than Medi-Cal limits. Therefore, a disabled person who receives SSI also receives free medical care under the Medi-Cal program.
Earnings above Medi-Cal income limitations require a portion of the cost (SOC) of the healthcare cost. The purpose of the special needs trust is to provide benefits to the disabled without the benefits being recorded as earnings. Therefore, money outlays to the disabled could not be made to preserve free medical care.