Special needs trusts
Money left straight to someone on SSI or Medicaid can cost them those benefits. A special needs trust holds the inheritance for them instead, so it adds to their life without replacing what they already get.
The trust I draft is a third-party trust: it's funded by parents, grandparents or siblings, never by the person's own money. A trustee you choose pays for the things benefits don't cover, like a phone, a trip to see family, a better wheelchair or a summer program.
Who it's for
- Parents of a child with a disability, of any age
- Grandparents who'd like to leave something to a grandchild on benefits
- Brothers and sisters who expect to look after a sibling one day
- Families who aren't sure yet whether benefits will be needed
The letter that goes with it
With every special needs trust I include a letter of intent: your words, not mine, about routines, doctors, what calms them and what they love. It isn't legally binding. It's often the page the next trustee reads most.
Written for the sibling who will be trustee
The trustee is often a brother or sister, years from now. The trust explains in plain words what they can pay for, what to avoid and whom to call, so they don't have to guess.
Fees
How a special needs trust’s fee works
Quoted in writing before I start. It costs less drafted with a plan than on its own, because the documents are written to point to each other.
On its own
For a family that already has wills or a trust they're happy with.
Start this planThird-party special needs trust
Letter of intent, drafted with you
Changes to beneficiary forms, listed for you
One round of changes to the draft
Signing with a notary
One-page summary for the trustee
Added to a plan
Drafted alongside a will-based or trust-based plan, so the documents point to each other.
Start this planThird-party special needs trust
Letter of intent, drafted with you
Your will or trust written to fund it
One signing for everything
One-page summary for the trustee
Changes to an existing will or trust are quoted separately. A first-party trust, for money that already belongs to the person, follows different rules. I'll refer you to a colleague who handles those.
Questions about special needs trusts
Do we need one if our son doesn't get benefits yet?
Often yes. Many people qualify for SSI or Medicaid at 18 or later. A trust written now costs less than undoing an inheritance that has already arrived.
Who can be the trustee?
A parent while you're alive, then usually a sibling, relative or trusted friend. You can name a professional trustee as a backup.
What about an ABLE account?
An ABLE account is useful for smaller amounts the person can manage. Many families use both. I'll explain how they fit together on the first call.
Can grandparents leave money to the trust?
Yes, and they should. I'll give you the exact wording for their wills and beneficiary forms so their gift goes to the trust, not to the grandchild directly.
Talk it through with Nadira
Bring what you know about benefits now, even if it's not much. We'll work out the rest together.