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SPECIAL NEEDS PLANNING

Special Needs Estate Planning focuses on providing for the special needs of our loved ones with disabilities when we are no longer there to organize and advocate on their behalf. Parents of children with special needs must make careful estate planning choices to coordinate all of the legal, financial, and special care needs of their children – both now and in the future.

The Two Common Trust for Special Needs Planning

Support Trusts

Support Trusts require the Trustee to make distributions for the child's support in areas like food, shelter, clothing, medical care, and educational services. Beneficiaries of Support Trusts are not eligible to receive financial assistance through Supplemental Security Income (SSI) or Medicaid. If your child will require SSI or Medicaid, you should avoid a Support Trust.

Special Needs Trusts

For many parents, a Special Needs Trust is the most effective way to help their child with a disability. A Special Needs Trust manages resources while also maintaining the child's eligibility for public assistance benefits.

Two Types of
Special Needs Trusts

Third-Party Special Needs Trust

Created using the assets of the parent(s) as part of an estate plan; distributed by a Will or Living Trust.

Self-Settled Special Needs Trust

Generally created by a parent, grandparent or legal guardian using the child's assets to fund the Trust (e.g., when the child receives a settlement from a personal injury lawsuit and will require lifelong care). If assets remain in the Trust after the child’s death, a payback to the state is required, but only to the extent the child receives public assistance benefits.

Resources

Quick References for the additional resources you may need

Calculator

These calculators can help you project the future expenses of an individual with special needs.