Special Needs Planning
Planning for a loved one with a disability means planning for every phase of their life — not just tomorrow, but decades from now, and for what happens after you are gone. At Lighthouse Legal Group, our attorneys help families build a framework that protects their loved one’s quality of life and government benefits for the long term.
Why Special Needs Planning Requires Its Own Approach
Standard estate planning documents — a will, a trust, a beneficiary designation — can inadvertently disqualify a person with a disability from Medicaid, Supplemental Security Income (SSI), and other need-based programs they depend on. A direct inheritance, however well-intentioned, can put those benefits at risk the moment it is received.
Special needs planning threads this needle carefully, ensuring that your loved one continues to receive essential government support while also benefiting from the resources your family has set aside for them.
Special Needs Trusts
The cornerstone of most special needs plans is a Special Needs Trust. There are two primary types:
Third-Party Special Needs Trust
Created using a parent’s or grandparent’s own assets as part of their estate plan. This is the most common type for families planning ahead. It can be funded through a will, a living trust, or life insurance, and — critically — does not require any payback to the state after the beneficiary’s death.
Self-Settled Special Needs Trust
Created using the disabled person’s own assets — for example, when a child receives a personal injury settlement that would otherwise disqualify them from benefits. A payback provision to the state is generally required at the beneficiary’s death, but only to the extent Medicaid benefits were received.
Special Needs Trusts can be structured as standalone trusts funded with assets such as life insurance, or as sub-trusts within an existing living trust. Our attorneys will help you choose the right structure for your family.
ABLE Accounts
Achieving a Better Life Experience (ABLE) accounts offer another tool for families. ABLE accounts allow individuals with qualifying disabilities to save money without losing means-tested government benefits, subject to annual contribution limits.
- Up to $15,000 may be contributed per year
- The first $100,000 does not count toward the $2,000 SSI resource limit
- If the balance exceeds $100,000, SSI cash benefits may be temporarily suspended until the balance falls below that threshold
ABLE accounts and Special Needs Trusts can often be used together as complementary tools. We can help you understand how each fits into your overall plan.
Transition Planning
As a child with special needs grows toward adulthood, transition planning becomes essential. Key questions to address well before adulthood include:
- Will your child be able to live independently, or will they need a supported living environment?
- Who will advocate for your child when you are no longer able to? Family members, caregivers, and legal representatives should be identified now.
- Should a guardianship or other legal structure be established when your child turns 18?
- Is a special needs trust in place, and is it properly funded?
Transition planning is an evolving process, not a one-time task. Our attorneys can help you revisit and adjust your plan as your child’s needs change.
Resources for Families
- Special Needs Alliance — Handbook for Trustees (specialneedsalliance.org)
- The Arc — advocacy and resources for people with intellectual and developmental disabilities (thearc.org)
- National Alliance on Mental Illness — nami.org
- Center for Parent Information and Resources — parentcenterhub.org
- Social Security Administration SSI Benefits — ssa.gov/benefits/ssi/
Contact Lighthouse Legal Group
Our attorneys are ready to help. Call us at 407-863-6175 or visit lighthouselegalfirm.com to schedule a consultation at our Orlando office.
