MIssion and vision
What Is a First-Party Special Needs Trust?
A First-Party Special Needs Trust (also called a Self-Settled Special Needs Trust) is a legal tool that allows a person with a disability to protect their own assets while maintaining eligibility for important “means-tested” government benefits such as SSI and Medi-Cal. Without a Special Needs Trust, receiving money directly—through an inheritance, legal settlement, back payment, retirement funds, or other financial assets—could cause an individual to lose eligibility for these critical benefits. A First-Party Special Needs Trust helps prevent that from happening.
How Does It Work?
The individual’s funds are placed into a Special Needs Trust that is managed by a trustee. The trustee oversees the funds and uses them to pay for approved supplemental expenses that improve the beneficiary’s quality of life while helping preserve eligibility for public benefits. These funds may be used for items and services such as:
*Housing-related expenses *Education and vocational training
*Transportation
*Technology and communication devices
*Recreation and social activities
*Personal care items and other quality-of-life needs
Who Might Need a First-Party Special Needs Trust?
A First-Party Special Needs Trust may be appropriate for individuals with disabilities who receive or may need public benefits and who are about to receive money from sources such as:
- Personal injury settlements
- Inheritances received directly
- Retirement accounts
- Back payments from Social Security
- Divorce settlements
- Savings or other financial assets
PLAN of California Master Pooled Special Needs Trust
Proxy Parent Foundation serves as trustee of the PLAN of California Master Pooled Special Needs Trust, which is open to individuals of all disabilities and all ages with no asset minimum.
Our pooled trust allows individuals to protect assets while maintaining eligibility for public benefits, with each beneficiary having their own separate sub-account within the trust.
In addition to trust administration, Proxy Parent Foundation provides compassionate, family-like service focused on helping individuals maintain dignity, stability, and quality of life.
Important Note
Special Needs Trusts are complex legal and financial planning tools. Proxy Parent Foundation encourages families and individuals to consult with qualified legal counsel regarding their specific circumstances.
If you would like to learn more about whether a First-Party Special Needs Trust may be right for you or your loved one, please contact us for more information.
