Trustee services in California
Special Needs Trusts
Thoughtful administration that puts the beneficiary's daily life, preferences, and long-term needs at the center.
A special needs trust (SNT) can provide funds for a person with a disability while taking means-tested public benefits into account. Dignity Fiduciary provides trustee services for first-party and third-party trusts, working with families and professional advisors to administer the trust responsibly.
The source of the funds matters
First-party and third-party trusts serve related purposes, but they are not interchangeable. Who owns the assets before they enter the trust affects how the trust must be structured and administered.
First-party special needs trusts
These trusts hold assets that belong to the beneficiary, such as settlement proceeds or an inheritance received directly by the beneficiary.
Specific legal requirements apply. A first-party trust may require repayment to Medicaid, known as Medi-Cal in California, from funds remaining after the beneficiary's death. Counsel should review the applicable requirements, including any age, disability, establishment, and repayment provisions.
Third-party special needs trusts
These trusts are funded with assets belonging to someone other than the beneficiary, often a parent, grandparent, or another loved one planning a gift or inheritance.
Different rules apply. A properly structured third-party trust generally does not have the same Medicaid repayment requirement as a first-party trust. Its terms can direct remaining assets to other beneficiaries. Beneficiary-owned assets should not be added without legal review.
What Lucas does as trustee
Lucas Meyers, CLPF #1498, NCG, administers the trust according to its terms and applicable requirements. The work combines financial stewardship with attention to the beneficiary's goals, routines, and support needs.
Understand the person and the plan
Discuss the beneficiary’s preferences, care needs, existing benefits, and family priorities to inform administration and spending decisions.
Manage assets and plan spending
Inventory trust assets, maintain trust financial records, and plan for current expenses and longer-term needs in coordination with appropriate financial professionals.
Review distribution requests
Evaluate proposed payments against the trust terms and benefit rules, seek specialist guidance when needed, and document decisions and payments.
Keep records and coordinate reporting
Maintain receipts and transaction records, prepare required accountings, and coordinate applicable agency reporting, court requirements, and tax filings with relevant professionals.
Communicate with the support team
Keep authorized family members and advisors informed, with attention to the beneficiary’s privacy, and coordinate with care providers where appropriate.
Clear roles, coordinated support
Your attorney advises on the legal structure and drafts the trust. Lucas administers it. Dignity Fiduciary does not draft trust documents or provide individualized legal advice.
During setup or a trustee transition, Lucas works with counsel to understand the document, funding instructions, trustee authority, and any court orders. A benefits specialist can help clarify the beneficiary's programs, reporting duties, and the potential effect of a proposed distribution.
As circumstances change, such as a move, a new benefit, or a significant purchase, Lucas coordinates review with the appropriate advisors before making decisions. Families and beneficiaries are encouraged to share changes promptly rather than assume a previously approved payment will always be appropriate.
What to bring to a consultation
You do not need every document to start a conversation. Bring what is available so Lucas can understand the situation, discuss the trustee role, and identify questions for your attorney or benefits specialist.
- Trust and legal documents: The signed trust or proposed draft, amendments, relevant court orders, and any documents naming the current or successor trustee.
- Benefits information: Current SSI, Medi-Cal, or other benefit notices, renewal dates, and any recent agency correspondence.
- Assets and funding: A summary of assets already in the trust or proposed for funding, their ownership and source, and available account statements.
- Daily needs and priorities: A general budget, living arrangements, care and support needs, anticipated purchases, and the beneficiary's own goals and preferences.
- Your professional team: Contact details for the attorney, benefits specialist, accountant, care providers, and current trustee, as applicable.
- Your questions: Concerns about a trustee transition, payment requests, communication, reporting, or how administration would work for your family.
Please do not send Social Security numbers, full account numbers, or sensitive medical records through scheduling notes. Ask how to share documents securely.
Discuss your family's next step
Whether a trust is being planned or already needs a trustee, a consultation is a place to discuss the beneficiary's needs and what responsible administration would involve.
This page provides general information, not legal, tax, or benefits advice. Consult your attorney and appropriate specialists about your circumstances before establishing or funding a trust or making distributions.