In this post we will explain what special needs planning is, why it matters, and how to get started.
Planning for the future is important for any family, but when you have a loved one with special needs, the stakes are higher. You’re not just thinking about retirement or inheritance. You’re thinking about how your loved one will be cared for in the future when you’re no longer around to do it yourself.
What Is Special Needs Planning?
Special needs planning is the process of creating a plan, on paper and in action, for your loved one’s future care, finances, and quality of life.
It includes legal documents, financial planning, and written guidance for future caregivers. The goal? To make sure your loved one is protected, supported, and cared for without jeopardizing their access to essential benefits like SSI or Medicaid.
Some of the most common tools include:
– Special Needs Trusts (SNTs): A legal tool that holds money or property for your loved one without counting against their eligibility for government benefits. It’s managed by someone you trust. The money is used to enhance quality of life.
– ABLE Accounts: A tax-advantaged savings account for people with disabilities. It allows them to save money in their own name without affecting benefits. The money can be used for a wide range of disability-related expenses.
– Wills, Trusts and Estate Planning: Your will and family trust outline who inherits what and when. With a good estate plan, you can make sure assets are passed on in a way that doesn’t accidentally disqualify your loved one from benefits.
– Powers of Attorney: A power of attorney allows a trusted person to make financial or healthcare decisions for someone else if they are unable to do so themselves. These are important documents to have in place. If something happens to you, another person can manage your affairs.
– Letters of Intent: This isn’t a legal document, but it’s one of the most important pieces. It tells future caregivers who your loved one is, what they like and need, and how you’d want them to be cared for.
– Future Care and Budget Planning: This part lays out the likely costs of care over time and helps you figure out how to fund it using a combination of trusts, benefits, insurance, or other resources.
It’s not just about money. It’s about peace of mind.
Why You Need It Regardless of the Size of Your Estate
Special needs planning is not just for wealthy families.
In fact, families of all income levels need a plan, especially because benefit programs like SSI and Medicaid have strict asset and income limits.
As of now, your loved one typically cannot have more than:
– $2,000 in assets
– About $1,600/month in income
…and still qualify for essential benefits.
For example, a well-meaning inheritance, gift, or even a modest legal settlement can accidentally disqualify someone from the programs they rely on.
Without a plan, your loved one might be forced to “spend down” their resources just to get back on benefits. As a result, they often will be pushed back into poverty.
That’s not okay. And it’s preventable.
On the opposite end of the spectrum, wealthy families may think they do not need a plan if their loved one doesn’t rely on government benefits. This is also untrue. Your loved one with special needs likely will not be able to manage their own affairs. Special needs planning protects the assets you have worked hard to build and sets aside funds for the exclusive benefit of your loved one. People with special needs may be particularly vulnerable to theft or loss and may need their assets protected.s a
Common Mistakes Families Make
- Assuming they can’t afford a plan
- Leaving money directly to their child in a will
- Naming their child with special needs as a beneficiary of retirement accounts or insurance
- Forgetting to name backup guardians or trustees
- Assuming siblings will “figure it out”
- Not realizing how fragile benefit eligibility is
- Delaying planning until there’s a crisis
- Assuming they have too many assets for a plan
- Assuming they have too little assets for a plan
You don’t have to make those mistakes. And you don’t have to do this alone.
How Special Needs Planning Helps
– Protects SSI and Medicaid benefits
– Gives your family clear roles, responsibilities, and direction while avoiding family conflict
– Makes life easier for future caregivers by giving them clear instructions
– Reduces stress and confusion during transitions
– Provides a lifetime of comfort, care, and supervision
What’s Next?
If this feels overwhelming, take a breath. That’s normal. The good news is that you’re here, and you’re thinking about this. That’s the first step.
Start by talking with us. We know this world. Ask questions. Explore your options. You don’t need to have everything figured out today. In fact, taking some action is better than doing nothing.
Want help getting started? Book a complimentary consultation, explore the other resources on our site, or reach out with your questions.
Special needs planning isn’t just paperwork. It’s love, in action. What’s more, it’s making sure your child, sibling, or partner is safe, cared for, and supported for life.
Disclaimer: I am not an attorney, and this post does not constitute legal or financial advice. The information provided is for educational purposes only. Please consult a qualified attorney in your state for advice specific to your family’s situation. Disclaimer
