Special Needs Trusts: Protecting a Loved One Without Jeopardizing Benefits

Episode Summary

In this episode of Estate Planning: Beyond the Binder, Brian Chew, Managing Partner of OC Wills and Trusts, discusses how families can plan for children or loved ones with special needs. He explains how a properly designed special needs trust allows families to provide financial support without disqualifying their loved one from essential government benefits such as SSI and Medi-Cal. Brian also covers the differences between first-party and third-party special needs trusts, common mistakes families make, and the critical importance of choosing the right trustee.

What You Will Learn in This Episode

• What a special needs trust is and how it protects government benefits
• The difference between first-party and third-party special needs trusts
• Why advance planning avoids Medi-Cal “payback” provisions
• How funds in a special needs trust can be used to improve quality of life
• The challenges of selecting the right trustee and why it matters
• When to set up a standalone special needs trust versus adding a trust provision
• How extended family members (grandparents, aunts, uncles) can contribute without jeopardizing benefits
• Why logistics and care planning are just as important as financial planning

Key Timestamps

01:20 – What a special needs trust is and how it works 04:45 – Difference between third-party and first-party special needs trusts 07:30 – How trust funds can be used without affecting SSI or Medi-Cal 10:15 – The biggest challenge: choosing the right trustee 13:40 – How other relatives can contribute safely to a special needs trust 15:20 – Why planning ahead prevents Medi-Cal payback 17:10 – Advice for families feeling overwhelmed by the process

About the Show

Estate Planning: Beyond the Binder is a podcast dedicated to simplifying estate planning for families in California. Featuring attorney Brian Chew, managing partner at OC Wills and Trusts, the show provides expert insights into trusts, wills, and asset protection strategies. Through clear explanations and practical advice, the podcast empowers listeners to secure their family’s financial future and build lasting legacies.