Planning for Special Needs: Legal Guidance for Families with Disabilities

If you have a loved one who’s living with a disability, it is essential to begin planning for your loved one because life is unpredictable. Being prepared is key to ensuring their well-being. Read on to learn more about special needs planning and how you can prepare.

What is a Special Needs Trust?

A Supplement Needs Trust also known as a Special Needs Trust (SNT) can be an effective estate planning tool.

The SNT enables a person, under the age of 65, with a physical or mental disability or a person with a chronic or acquired illness, to have held in trust for his or her benefit an unlimited amount of assets. The disability is determined according to certain Social Security standards.  A SNT trust must be established before the person’s 65th birthday.

The SNT can be funded by the disabled person’s own assets (i.e. a first party SNT) or a trust formed by a third party, whose assets are left to the disabled person (i.e. a third party SNT).  Assets properly placed in a SNT are not considered countable assets for purposes of qualification for certain governmental benefits, such as Supplemental Security Income (SSI), Medicaid, subsidized housing and other benefits based upon need.

A SNT provides for “supplemental and extra care over and above that which the government provides.” A SNT is designed to maintain government benefit eligibility, but to bring a better quality of life to the beneficiary. There are specific rules that say what the trust funds can and cannot be used for. 

It is always wise to consult an experienced attorney regarding the use of a SNT, especially if the disabled person acquires funds via proceeds from a personal injury settlement, a bequest from a relative or friend, insurance proceeds or the like. 

Your Next Steps

Once a special needs trust is established, the next step is naming a legal guardian for the disabled person. If your loved one is unable to make his or her own decisions, they should have a legal guardian appointed to advocate for them. This individual will be making critical decisions related to their care, daily living and finances.

A non-legally binding document, a letter of intent, can be an additional component in special needs planning. A letter of intent provides important details and guidance essential for future caregivers or trustees. This helpful resource comprises your loved one’s medical history, preferences, daily care, and long-term care needs.

Additionally, setting up an ABLE (Achieving Better Life Experience) account can help your loved ones with disabilities save money without losing eligibility for government benefits. This is a tax-advantage savings account and funds from an ABLE account can be used for expenses like housing, transportation, healthcare and education.

Start Planning Now

Life is unpredictable and it’s never too early to start planning. Having a solid and well-structured plan promises peace of mind for you and your loved ones. Special needs planning ensures a smooth transition of care when the time comes.

How to Get Started

Get started by consulting a special needs attorney. Working with a legal professional can give you guidance and help you understand the legal process. Additionally, working with a professional ensures all documents comply with state and federal laws.

Oklahoma attorney, Kevin L. Miller, PC can help you. Kevin has over 35 years of experience in helping individuals and families of all kinds.

Now is the perfect time to put a plan in place. Call Kevin L. Miller, PC at