Estate Planning

Special Needs

Special needs planning is a type of estate planning that focuses on providing for individuals with disabilities, whether they are children or adults. The goal of special needs planning is to ensure that individuals with disabilities receive the best possible care and support throughout their lives.

People with disabilities often require specialized medical care, therapy, and other types of support that can be expensive. Additionally, many people with disabilities rely on government benefits to help them meet their basic needs. Without proper planning, receiving an inheritance or other types of financial gifts can cause these individuals to lose their eligibility for government benefits.

Special needs planning can help ensure that individuals with disabilities can receive the care and support they need without losing access to government benefits. One of the key components of special needs planning is the creation of a special needs trust.

A special needs trust is a type of trust that is designed to provide for individuals with disabilities without jeopardizing their eligibility for government benefits. Assets that are placed into a special needs trust are managed by a trustee, who is responsible for using the assets to provide for the beneficiary’s needs. Because the assets in the trust are not owned by the beneficiary, they do not count against the asset limits that apply to many government benefit programs.

There are two main types of special needs trusts: first-party trusts and third-party trusts. A first-party trust is funded with the beneficiary’s own assets, such as a personal injury settlement. A third-party trust is funded with assets that belong to someone other than the beneficiary, such as a parent or grandparent.

In addition to special needs trusts, there are other tools and strategies that can be used in special needs planning. For example, individuals with disabilities may be eligible for government benefits such as Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) and State Medicaid benefits. Special needs planning can help ensure that individuals with disabilities are able to access these benefits.

Special needs planning can also involve working with healthcare providers and other professionals to ensure that individuals with disabilities receive the best possible care. This may include developing a care plan that outlines the individual’s medical needs and preferences, as well as identifying potential care providers.

Overall, special needs planning is an essential component of estate planning for individuals with disabilities and their families. With the right planning, individuals with disabilities can receive the care and support they need without losing access to government benefits or other sources of support. If you or a loved one has a disability, it is important to work with an experienced estate planning attorney who can help you navigate the complexities of special needs planning and ensure that your wishes are carried out.