Special Needs Trust Attorney Near Me

Quick Answer: What Does a Special Needs Trust Attorney Do?

A special needs trust attorney helps families create and coordinate legal strategies for a person with disabilities who may receive an inheritance, settlement, family assets, or other financial support.

Depending on the circumstances, the attorney may help:

• Determine which type of special needs trust may be appropriate
• Draft the trust
• Coordinate the trust with the family’s broader estate planning
• Address beneficiary designations
• Explain how the trust should be funded
• Help select an appropriate trustee
• Coordinate wills, a living trust, and powers of attorney
• Discuss how distributions could affect certain public benefits
• Plan for inheritances and life insurance
• Address guardianship and related disability planning issues
• Work with financial, tax, insurance, and care professionals

The goal is not simply to produce a legal document. Effective special needs planning should create a coordinated strategy for the beneficiary’s future.

What Is a Special Needs Trust?

A special needs trust is a legal arrangement that holds and manages assets for the benefit of an individual with a disability.

Instead of giving assets directly to the beneficiary, assets are generally held in the trust and administered by a trustee according to the trust’s terms.

This distinction can be particularly important for individuals who receive means tested government benefits.

Programs such as SSI and Medicaid have financial eligibility requirements. A substantial amount of money received directly through an inheritance, settlement, gift, or other source could potentially affect eligibility.

A properly structured SNT may allow assets to be used for the beneficiary without necessarily being treated the same as assets owned directly by that person for purposes of certain benefits.

However, special needs trust rules can be complicated. The source of the assets, type of trust, beneficiary’s circumstances, applicable federal requirements, state law, and administration of the trust can all matter.

Why Might Someone With a Disability Need a Special Needs Trust?

Consider this simple example.

Parents have an adult daughter with developmental disabilities who receives SSI and Medicaid. They want her to inherit $250,000 when they die.

Leaving that money directly to her could potentially affect eligibility for means tested public benefits because she would personally own the inheritance.

The parents may instead consider creating a properly structured special needs trust to receive assets intended for their daughter.

The objective isn’t to hide money.

The objective is to create a legally appropriate structure through which family resources can potentially supplement the services, medical care, support, and government assistance available to the beneficiary.

For many families, an SNT becomes one piece of a much larger long term plan.

What Is Special Needs Estate Planning?

Special needs estate planning is the process of creating a coordinated legal and financial plan for a person with disabilities.

A special needs trust may be one component of the plan, but comprehensive special needs planning can involve much more.

Depending upon the family, the plan may address:

• Special needs trusts
• Wills
• Living trusts
• Powers of attorney
• Guardianship or alternatives to guardianship
• Life insurance
• Retirement accounts
• Beneficiary designations
• Medicaid and SSI
• Housing
• Long term care
• Caregiver succession
• Trustee selection
• Medical care
• Transportation
• Education and employment
• Future advocacy
• Probate planning

The goal is to answer a difficult but important question:

What happens when the people providing support today are no longer able to do it?

Good special needs estate planning attempts to create financial resources, legal authority, instructions, and a support structure that can continue after parents or caregivers become incapacitated or die.

That is why special needs planning should generally be viewed as long term planning, rather than simply preparing a trust document.

What Are the Different Types of Special Needs Trusts?

Not every special needs trust works the same way.

One of the first questions an attorney will typically consider is:

Whose money is going into the trust?

That distinction can determine what type of SNT should be considered.

Third Party Special Needs Trust

A third party special needs trust generally contains assets belonging to someone other than the beneficiary.

For example, parents might establish an SNT for their son and direct assets into it through their estate plan when they die.

Grandparents and other family members may also be able to coordinate gifts or inheritances with the trust.

A third party trust can therefore become an important component of long term planning for a family caring for a person with disabilities.

First Party Special Needs Trust

A first party special needs trust generally contains assets that belong to the individual with a disability.

This situation can arise when someone receives:

• An inheritance directly
• Personal injury settlements
• Existing savings or investments
• Certain other assets belonging to the individual

Federal law provides special treatment for certain trusts containing the assets of a person with disabilities when specific requirements are met.

These trusts can have requirements that differ significantly from a third party SNT, including provisions concerning what happens to remaining assets after the beneficiary dies.

This is one reason families should seek qualified legal advice rather than assuming all special needs trusts are interchangeable.

Pooled Special Needs Trust

A pooled trust may provide another option.

Pooled trusts are generally established and managed by nonprofit organizations. Each beneficiary has a separate account, while assets may be pooled for investment and management purposes.

Depending on the circumstances, an attorney may discuss a pooled trust alongside other special needs planning strategies.

Will a Special Needs Trust Protect SSI and Medicaid?

A properly structured special needs trust may help preserve eligibility for certain means tested benefits, but creating an SNT does not automatically guarantee continued SSI or Medicaid eligibility.

The details matter.

Social Security has specific rules concerning trusts and SSI. Medicaid also involves federal requirements and state administered programs.

The beneficiary’s assets, income, living arrangements, trust provisions, type of trust, and distributions may all affect the analysis.

This is why families should be cautious about broad promises that a trust will simply “protect all government benefits.”

The attorney should evaluate the actual circumstances.

What Can a Special Needs Trust Pay For?

A common misconception is that assets placed in an SNT become unavailable to the beneficiary.

That generally misses the purpose of the trust.

Depending on the trust and the beneficiary’s circumstances, trust assets may potentially pay for goods and services that enhance the beneficiary’s health, independence, comfort, and quality of life.

These may include expenses involving:

• Education
• Therapy
• Transportation
• Technology and communication devices
• Recreation
• Travel
• Furniture and personal items
• Certain professional services
• Uncovered medical expenses
• Personal care
• Other supplemental needs

However, how money is distributed can matter.

Payments directly to the beneficiary or payments for certain food or housing expenses, for example, may be treated differently under applicable benefit rules than payments for other goods and services.

The trustee therefore needs to understand both the trust document and the potential consequences of distributions.

What Are the Disadvantages of a Special Needs Trust?

A special needs trust can be extremely useful, but it is not the right solution for every family and it does come with tradeoffs.

One potential disadvantage is that the beneficiary generally does not have unrestricted control over the assets. The trustee controls trust distributions according to the trust document and applicable law.

That structure is often intentional, but it also means the beneficiary may need to request money or have expenses paid through the trustee.

Other potential disadvantages can include:

• Legal costs to create and maintain the trust
• Trustee fees, particularly when a professional trustee is used
• Ongoing administrative and recordkeeping responsibilities
• Tax reporting requirements
• Restrictions on how distributions should be made
• The possibility that poorly structured distributions could affect SSI or Medicaid
• Difficulty selecting a qualified trustee
• The need to periodically review the trust as laws, benefits, and family circumstances change

Certain first party special needs trusts may also be subject to Medicaid reimbursement requirements after the beneficiary dies.

The important point is that a special needs trust is not simply an account where money is deposited and forgotten.

It is an ongoing legal and financial arrangement that should be administered carefully.

For the right family, those administrative requirements may be well worth the benefits. But an experienced attorney should explain both the advantages and disadvantages before recommending an SNT.

How Much Money Should You Put in a Special Needs Trust?

There is no universal amount that every family should put into a special needs trust.

The appropriate funding amount depends upon the beneficiary’s circumstances and the resources likely to be available throughout their lifetime.

Families may need to consider:

• The beneficiary’s age
• Life expectancy
• Housing needs
• Medical care
• Therapy and support services
• Transportation
• Education
• Employment prospects
• Caregiver costs
• Long term care
• Available SSI and Medicaid benefits
• Other public benefits
• Family support
• Existing savings and investments
• Life insurance
• Expected inheritances

For example, one individual may be able to live relatively independently while another may require substantial lifelong support.

Those two families could need very different funding strategies.

Parents also do not necessarily need to transfer all intended assets into the SNT immediately.

In many estate plans, a third party special needs trust is created now and funded later through life insurance, a living trust, wills, retirement accounts, or other assets after the parents die.

The better question is not simply:

“How much money should we put in the trust?”

It is:

“How much financial support is our family member likely to need over their lifetime, and what resources will be available to meet those needs?”

That question may require coordination among an estate planning attorney, financial professional, insurance professional, tax advisor, and members of the beneficiary’s care team.

How Is a Special Needs Trust Funded?

Creating a special needs trust and funding a special needs trust are two different things.

This distinction is extremely important.

An attorney can prepare an appropriate trust document, but the family must also understand where the assets intended to support the beneficiary will come from and how those assets will eventually reach the trust.

Depending upon the type of trust and the family’s estate plan, funding may involve assets such as:

• Cash and investments
• An inheritance
• Life insurance
• Assets passing through a living trust
• Assets passing under a will
• Certain beneficiary designated accounts
• Personal injury settlements
• Other family assets

Not every asset should necessarily be transferred to a special needs trust in the same manner.

Retirement accounts, life insurance, real estate, investment accounts, and other property can present different legal and tax considerations.

Families should therefore ask their attorney not simply whether the attorney will create the trust, but whether the attorney will help them understand how the trust will actually be funded.

A perfectly drafted trust may accomplish very little if the intended assets never reach it.

Can a Special Needs Trust Be Funded With Life Insurance?

Potentially.

Life insurance is frequently considered by parents who want to leave resources for a child who may require lifelong financial support.

The policy’s beneficiary designation is critical.

Naming the child directly could have a very different result from properly directing proceeds into an appropriate trust.

Families considering this strategy should have their estate planning attorney and insurance professional coordinate the plan.

What Happens if Someone With Special Needs Receives an Inheritance?

If an individual receiving means tested benefits receives an inheritance directly, don’t automatically assume there are no options.

Depending on the person’s age, disability, assets, benefits, and other circumstances, a first party SNT or another planning strategy may potentially be considered.

Do not simply transfer or give away the assets in an attempt to preserve benefits without first obtaining legal advice.

Transfers can create additional eligibility issues.

Speak with an attorney promptly before making significant financial decisions.

Should Grandparents Include a Special Needs Trust in Their Estate Planning?

Grandparents should understand the family’s plan before leaving assets directly to a grandchild who receives means tested benefits.

That doesn’t necessarily mean grandparents need to create their own SNT.

Depending on the family’s planning and applicable law, they may be able to coordinate their estate plan with an existing third party special needs trust.

Their own estate planning attorneys should review the strategy.

The key is communication.

A well meaning relative can unintentionally undermine years of planning by leaving assets to the wrong person or account.

Special Needs Trust vs. Living Trust: What’s the Difference?

A living trust and special needs trust generally serve different purposes.

A revocable living trust is commonly used as part of an individual’s estate planning to hold and manage their own assets during life and provide instructions for those assets at incapacity or death.

A special needs trust is designed specifically to hold and administer assets for a beneficiary with disabilities, often with particular attention to means tested benefits.

A family may likely need to have both.

For example, parents might establish a living trust as part of their own estate plan and direct a child’s share into a third party special needs trust at the appropriate time.

The documents should be coordinated rather than created independently.

Can a Special Needs Trust Help Avoid Probate?

A special needs trust can be part of an estate plan designed to reduce or avoid probate, but the trust itself does not automatically keep every family asset out of probate.

Whether an asset goes through probate generally depends on how that asset is owned and how it is transferred at death.

For example, assets may potentially pass outside probate when they are:

• Properly titled in a trust
• Payable to a valid beneficiary
• Transferred through certain joint ownership arrangements
• Otherwise structured to pass outside the probate estate under applicable law

This is where special needs planning and broader estate planning need to work together.

Why Probate Matters in Special Needs Planning

Probate is the court supervised process used to administer certain assets after a person’s death.

Depending upon the estate and applicable state law, probate can involve court filings, notices, administrative expenses, creditor procedures, and delays before assets are ultimately distributed.

For a family caring for someone with disabilities, there may be an additional concern.

You do not simply want the assets transferred efficiently. You also want them transferred to the right place.

Suppose parents create a special needs trust for their adult son who receives SSI and Medicaid and intend for $300,000 to eventually benefit him.

But their estate planning documents and account registrations are never properly coordinated with the SNT.

When the parents die, some assets may have to pass through probate before reaching the intended beneficiaries. Even worse, an outdated will or beneficiary designation could result in assets passing directly to the son rather than into the special needs trust.

That could create an entirely different set of planning problems.

Special Needs Trusts and Living Trusts Can Work Together

A family may use both a living trust and a special needs trust as part of the same estate plan.

For example, parents might establish a revocable living trust and transfer appropriate assets into it during their lifetime.

The living trust could then provide instructions that, after the parents die, the share intended for a child with disabilities passes into a properly structured third party special needs trust rather than being distributed directly to the child.

When properly structured and funded, a living trust may also allow certain trust owned assets to pass according to the trust terms without going through probate.

In this situation:

• The living trust may help address probate.
• The special needs trust addresses how the child’s inheritance will be managed.

Those are related goals, but they are not the same thing.

Beneficiary Designations Can Also Affect Probate

Some assets pass according to beneficiary designations rather than a will.

Examples can include:

• Life insurance
• Retirement accounts
• Certain annuities
• Payable on death accounts
• Transfer on death accounts

These assets may pass outside probate when a valid beneficiary designation is in place.

But avoiding probate alone is not enough.

If a parent names a child receiving means tested government benefits directly as the beneficiary of a life insurance policy, the proceeds might avoid probate but still be paid directly to the child.

That could create problems for SSI, Medicaid, or other public benefits.

This illustrates an important special needs planning principle:

The goal is not simply to avoid probate. The goal is to make sure assets pass to the correct person or trust in the correct way.

Does Naming a Special Needs Trust as Beneficiary Avoid Probate?

Depending upon the type of asset, applicable law, and how the beneficiary designation is structured, naming an appropriate trust as beneficiary may allow certain assets to transfer directly to the trust instead of passing through probate.

However, beneficiary designations involving retirement accounts, life insurance, and other financial assets can have important legal and tax consequences.

Families should not change beneficiary designations without coordinating the decision with their estate planning attorney and other appropriate professionals.

Does a Will Avoid Probate?

Generally, a will does not itself avoid probate.

A will typically provides instructions for assets that are subject to probate.

This is an important distinction because families sometimes assume that creating a will or including a special needs trust within a will means the estate will automatically avoid probate.

A testamentary special needs trust, meaning a trust created under the terms of a will after death, may be appropriate in some situations. However, because it is created through the will, assets passing under that will may first be subject to the probate process.

Families concerned about probate should ask their attorney whether a living trust, beneficiary designation strategy, or other estate planning technique should be considered.

Ask Your Attorney About Both Probate and Special Needs Planning

When interviewing a special needs trust attorney, consider asking:

“How will our assets actually reach the special needs trust when we die?”

Then ask:

“Which of our assets are expected to go through probate?”

Those two questions can reveal whether the planning goes beyond drafting documents.

A comprehensive estate plan should consider not only the special needs trust itself, but also:

• How assets are titled
• Whether a living trust should be used
• Beneficiary designations
• Life insurance
• Retirement accounts
• Real estate
• Wills
• Powers of attorney
• Probate exposure
• The actual funding of the SNT

The objective is to create a coordinated system in which assets move as intended while supporting the beneficiary’s long term needs.

How Does Guardianship Work With a Special Needs Trust?

A special needs trust and guardianship solve different problems.

The trust concerns the ownership and management of assets.

Guardianship generally concerns legal authority to make certain decisions for another person when the requirements under applicable state law are satisfied.

Having an SNT does not automatically create a guardianship, and having a guardian does not eliminate the need for appropriate financial planning.

Depending upon the person’s abilities and circumstances, families may also need to discuss powers of attorney, supported decision making, or other alternatives permitted under applicable law.

Guardianship can involve significant legal rights and responsibilities and should not automatically be assumed to be necessary for every person with a disability.

Families should consider these issues together as part of comprehensive disability planning.

What Documents May Be Part of a Special Needs Estate Plan?

Every family is different, but comprehensive planning could potentially involve more than an SNT.

Depending upon the circumstances, an attorney may discuss:

• A special needs trust
• Wills
• A living trust
• Powers of attorney
• Health care documents
• Guardianship or alternatives
• Beneficiary designations
• Life insurance planning
• Retirement account planning
• A letter of intent or caregiver guidance
• Other estate planning documents

The objective is to make the pieces work together.

Should Parents Create a Special Needs Trust Now or Wait?

Ideally, families should consider special needs planning before assets are transferred directly to the person with a disability.

Waiting until parents are older can create unnecessary risks.

• A grandparent could die and leave money directly to the grandchild.
• A parent could die unexpectedly with an outdated beneficiary designation.
• The individual could receive a settlement.
• A family member could name the beneficiary directly on an account.
• Or the parents could become incapacitated before completing their estate planning.

Long term planning works best when it occurs before the crisis.

The trust may not need to receive substantial assets immediately. In some plans, the important first step is establishing the appropriate legal structure and coordinating future funding.

Why Jurisdiction Matters More in Special Needs Planning

Where a trust is created, administered, and governed can matter.

Families sometimes think of estate planning as a one time event: create a will or trust, sign the documents, and revisit them years later if something major happens.

For families caring for a person with disabilities, the planning environment can be much more dynamic.

A special needs plan may interact with federal benefit rules, state Medicaid programs, trust law, guardianship law, taxation, trustee requirements, housing decisions, long term care, public benefits, and the laws governing where the beneficiary and trustee live.

As a result, families with special needs dependents may have more reasons to review their estate planning and trust jurisdiction over time than families whose planning needs are relatively straightforward.

What Is Jurisdictional Shopping?

In estate planning, jurisdictional shopping generally means evaluating whether one state may offer legal, administrative, tax, trust, or other advantages compared with another state.

That does not mean a family can simply pick any state it likes and declare that state’s law applies.

Questions such as where the person creating the trust lives, where the beneficiary lives, where the trustee is located, where trust assets are administered, and what the trust document provides can all affect which state’s laws apply.

But when a family has legitimate connections to more than one state, or is considering a move, jurisdiction can become an important planning question.

Why Is This Especially Important for Families With Special Needs Dependents?

Special needs planning tends to require more ongoing coordination than many traditional estate plans.

A typical estate plan might primarily change when someone gets married, divorced, dies, has children, acquires substantial assets, or moves to another state.

A family with a special needs dependent may experience all of those changes plus additional developments involving:

• SSI eligibility
• Medicaid eligibility and waiver programs
• Public benefits
• Housing
• Medical care
• Long term care
• Guardianship or alternatives to guardianship
• Trustee changes
• Caregiver changes
• Employment and income
• Personal injury settlements
• Changes in the beneficiary’s abilities or support needs
• Changes in state or federal benefit rules

That can make the family’s planning more sensitive to changes in both law and location.

For example, moving a beneficiary from one state to another may involve much more than updating an address. Medicaid programs and waiver services are administered at the state level, and eligibility, available programs, waiting lists, and administrative practices can differ.

At the same time, the family’s special needs trust may need to be reviewed to determine whether the move affects how the trust should be administered.

Special Needs Trusts Are Not “Set It and Forget It” Documents

A third party special needs trust may remain in existence for decades.

During that time, the law can change. The beneficiary’s needs can change. Trustees can change. Parents may retire or relocate. Siblings may move to other states. The beneficiary may eventually live somewhere completely different from where the trust was originally created.

That makes periodic review particularly important.

For families caring for individuals with disabilities, the appropriate question is therefore not simply:

“Was this trust drafted correctly when we signed it?”

It is also:

“Does this trust still work appropriately for our family today?”

A Move to Another State Should Trigger a Special Needs Planning Review

If the beneficiary, parents, or trustee moves to another state, consider having the special needs plan reviewed.

That review may include:

• The special needs trust
• Medicaid and SSI considerations
• Available Medicaid waiver programs
• Trustee location and administration
• Guardianship orders
• Powers of attorney
• Health care documents
• A living trust
• Tax considerations
• Beneficiary designations
• Life insurance
• Real estate
• Long term care arrangements
• The beneficiary’s overall care plan

This does not mean every move requires creating an entirely new trust.

It means the move is an appropriate time to determine whether anything needs to change.

Guardianship Can Make Jurisdiction Even More Important

Jurisdiction can become particularly important when guardianship is involved.

A guardianship is generally established under state law. If a person under guardianship moves from one state to another, additional legal procedures may be necessary to have the guardianship recognized, transferred, or modified.

Families should not assume that moving across state lines is merely an administrative change.

The same principle applies to powers of attorney, health care documents, and other parts of the disability planning structure.

An attorney familiar with special needs planning can help identify which documents or court arrangements should be reviewed before or after a move.

Should You Move to Another State for Better Special Needs Benefits?

For some families, the answer may be worth investigating.

But this decision should involve much more than comparing Medicaid benefits on a website.

Families may want to evaluate:

• Medicaid programs
• Medicaid waivers
• Availability of home and community based services
• Waiting lists
• Housing options
• Medical specialists
• Therapy services
• Educational opportunities
• Employment services
• Transportation
• Caregiver availability
• State trust law
• Guardianship law
• Taxes
• Proximity to family
• Overall quality of life for the individual with disabilities

A state that appears attractive because of one program may be less attractive when the family’s entire support system is considered.

For that reason, jurisdictional shopping for a family with a special needs dependent should generally be approached as life planning, not merely legal or tax planning.

Ask Your Attorney Whether Jurisdiction Still Makes Sense

Families with long term special needs plans should periodically ask:

“Is the state governing or administering this trust still the best jurisdiction for our circumstances?”

That question may be particularly appropriate when:

• The beneficiary moves
• The parents move
• The trustee moves
• A professional trustee is appointed
• Medicaid benefits change
• The beneficiary’s care needs change
• Guardianship changes
• Significant new assets are added to the trust
• The family receives a large settlement or inheritance
• The trust has not been reviewed in several years

Not every change requires a new trust.

But families with special needs dependents often have more interconnected legal, financial, benefits, and care considerations than a traditional estate plan.

That is why ongoing review can be so important.

The goal of jurisdictional planning should not be finding the state with the cleverest trust law. It should be finding and maintaining the legal structure that best supports the beneficiary’s benefits, care, financial security, and quality of life over time.

Do I Need a Special Needs Trust Attorney?

Because special needs trusts can involve trust law, federal benefit requirements, Medicaid, SSI, taxation, estate planning, beneficiary designations, and state specific requirements, professional legal guidance can be particularly valuable.

The legal document is only part of the attorney’s role.

An experienced attorney should help the family identify which type of trust may be appropriate, how it fits with the rest of the estate plan, how it should be funded, who should serve as trustee, and what ongoing administration may be required.

Can I Set Up a Special Needs Trust Without an Attorney?

Trust forms and online documents are readily available, but a generic form cannot evaluate your family’s circumstances.

An experienced attorney should be asking questions such as:

• Who owns the assets?
• What disabilities and support needs does the beneficiary have?
• Does the beneficiary currently receive SSI?
• Does the beneficiary receive Medicaid?
• Could benefits become important later?
• Is this the beneficiary’s money or someone else’s?
• Who should manage the assets?
• How should distributions be handled?
• Is guardianship already established or being considered?
• Who will advocate for the beneficiary after the parents die?
• How should inheritances be directed?
• Should life insurance fund the trust?
• What happens to remaining assets when the beneficiary dies?
• How will the SNT actually be funded?

The answers affect the plan.

A generic document cannot interview your family.

What Should I Look for in a Special Needs Trust Attorney Near Me?

The closest attorney is not necessarily the attorney best suited to your family.

When searching for special needs planning attorneys, look for an attorney who regularly works with estate planning involving individuals with disabilities and understands how trusts interact with needs based benefits.

Here are some questions worth asking.

1. How Often Do You Handle Special Needs Planning?

Ask whether the attorney regularly works with families caring for individuals with disabilities.

An experienced special needs planning lawyer should understand the interaction among trust law, estate planning, disability planning, public benefits, family dynamics, and long term care considerations.

2. Do You Work With Both First Party and Third Party Trusts?

Ask the attorney to explain the difference.

You don’t need to become an attorney yourself. But you should feel confident that the person advising your family understands why the source of the assets matters.

3. Will You Review Our Entire Estate Plan?

An SNT should rarely be viewed in isolation.

Your attorney may need to review:

• Wills
• A living trust
• Powers of attorney
• Beneficiary designations
• Retirement accounts
• Bank and investment accounts
• Real estate
• Life insurance
• Existing trusts

A family could create an excellent special needs trust and then accidentally bypass it through an incorrect beneficiary designation.

4. Will You Help Us Fund the Trust?

This may be one of the most important questions you ask.

Creating a trust and funding a trust are two different things.

Ask exactly what the attorney’s engagement includes.

• Will the attorney simply draft the SNT?
• Will the attorney identify which assets should eventually reach it?
• Will the attorney help coordinate beneficiary designations?
• Will the attorney review life insurance and retirement account designations?
• Will the attorney provide written funding instructions?

A perfectly drafted trust may accomplish very little if assets never reach it.

5. Will You Help Us Choose a Trustee?

Choosing a trustee can be one of the most consequential decisions in the planning process.

The trustee may eventually be responsible for managing assets, maintaining records, evaluating distributions, working with advisors, communicating with caregivers, and considering how distributions interact with benefits.

A sibling may be an excellent choice in one family and a poor choice in another.

Some families may consider professional or corporate trustees.

The decision should be based on the beneficiary’s needs and the responsibilities involved, not simply family tradition.

6. Do You Help With Guardianship and Decision Making?

A special needs trust addresses assets.

It does not automatically answer questions about who can make personal, financial, or medical decisions for another adult.

Depending upon the person’s abilities and circumstances, families may need to discuss guardianship, powers of attorney, supported decision making, or other alternatives permitted under applicable law.

7. How Do You Plan for Long Term Care and Support?

Good special needs planning isn’t solely about preserving benefits.

Families should also think about long term care, housing, transportation, caregivers, medical care, employment, community involvement, advocacy, and quality of life.

The financial plan should support the life plan.

How Much Does a Special Needs Trust Attorney Cost?

There isn’t one universal price for a special needs trust attorney.

The cost can depend on:

• Complexity of the beneficiary’s circumstances
• Type of SNT
• Family assets
• Existing estate planning
• Number of documents required
• Guardianship considerations
• Tax issues
• Funding assistance
• Beneficiary designation work
• Attorney experience
• Applicable state law

Some attorneys use flat fees for certain planning services, while others charge hourly or use a combination.

Instead of asking only:

“How much does the trust cost?”

Ask:

“What is included?”

There is an important difference between paying for a document and paying for comprehensive planning.

Do I Need a Local Special Needs Trust Attorney?

You generally need an attorney who is properly licensed to advise you regarding the laws applicable to your situation.

That doesn’t necessarily mean the attorney must have an office down the street.

Many attorneys now work with clients through video conferences, telephone calls, secure portals, and electronic communication, with in person meetings when appropriate or legally required.

So when searching special needs trust attorney near me, consider:

Experience + appropriate licensing + communication + comprehensive planning

rather than distance alone.

How Do I Find a Qualified Special Needs Trust Attorney Near Me?

Start by looking for attorneys whose practices specifically mention special needs planning, disability planning, elder law, trusts, or related estate planning services.

You can also research professional organizations.

The Special Needs Alliance is a national organization of attorneys whose practices include disability and public benefits law.

The National Academy of Elder Law Attorneys is another professional organization whose members practice in areas that can include elder law and special needs planning.

Membership in an organization alone does not guarantee that an attorney is right for your family, but professional directories can provide another place to begin your research.

When interviewing attorneys, ask about actual experience with families whose circumstances resemble yours.

Most importantly, ask whether the attorney’s work ends when the documents are signed or whether the attorney will help you implement and maintain the plan.

Special Needs Trust Attorney Near Me: Frequently Asked Questions

What is a special needs trust?

A special needs trust holds and manages assets for a beneficiary with a disability. Certain properly structured SNTs may allow resources to benefit an individual without those assets necessarily being treated as directly owned by the beneficiary for purposes of certain means tested benefits.

Why does a person with disabilities need a special needs trust?

A person with disabilities may benefit from an SNT when family members want to provide financial resources without simply transferring those assets directly to the beneficiary. Certain properly structured trusts may also help coordinate those resources with programs such as SSI and Medicaid.

Will a special needs trust affect SSI or Medicaid eligibility?

Potentially. The type and terms of the trust, source of the assets, distributions, and beneficiary’s circumstances can affect the treatment of an SNT for SSI or Medicaid purposes. Families should obtain individualized legal advice.

What are the disadvantages of a special needs trust?

Potential disadvantages can include legal and administrative costs, trustee fees, recordkeeping responsibilities, restrictions on distributions, tax considerations, and the beneficiary’s lack of unrestricted control over trust assets. Certain first party trusts may also involve Medicaid reimbursement requirements after the beneficiary’s death.

How much money should you put in a special needs trust?

There is no universal amount. The appropriate amount depends upon the beneficiary’s age, expected support needs, housing, medical care, available benefits, family resources, life insurance, expected inheritances, and other factors.

Who controls the money in a special needs trust?

The trustee administers the trust according to its terms and applicable law. The beneficiary generally does not have unrestricted control over trust assets in the same way they would control money in a personal bank account.

Can parents put their own money into a special needs trust?

Potentially. Parents may be able to establish and fund a third party SNT for a family member with disabilities. How and when it should be funded depends upon the family’s circumstances and estate plan.

Can a special needs trust own a house?

Potentially, depending upon the trust, applicable law, benefits involved, and beneficiary’s circumstances. Housing is an area where benefit rules can become particularly important, so individualized legal advice is important.

Can a special needs trust pay for therapy?

Potentially. Depending on the trust and circumstances, trust assets may be available for therapy, medical expenses, equipment, services, and other needs of the beneficiary.

Can a special needs trust pay for long term care?

Potentially, although the appropriate strategy depends upon the beneficiary, type of care, trust provisions, available benefits, and applicable law.

Does a special needs trust avoid probate?

Not automatically. Whether an asset goes through probate generally depends upon how the asset is owned and transferred at death. A special needs trust can be coordinated with a living trust, beneficiary designations, and other estate planning strategies designed to reduce or avoid probate.

Is a special needs trust the same as guardianship?

No. A special needs trust manages assets for a beneficiary, while guardianship generally concerns legal decision making authority. A family may need one, both, or neither depending upon the circumstances.

Is a special needs trust only for wealthy families?

No. Families should consider what assets might eventually benefit the individual, including a home, retirement accounts, savings, inheritances, and life insurance. The appropriate strategy depends upon the beneficiary’s expected needs and available resources.

When should I create a special needs trust?

Ideally, families should consider special needs planning before assets are transferred directly to the person with a disability. Planning before an inheritance, settlement, or parent’s death generally provides more opportunity to coordinate the strategy.

Can I create a special needs trust without an attorney?

Trust forms may be available without an attorney, but special needs trusts can involve trust law, SSI, Medicaid, taxation, state law, beneficiary designations, and ongoing administration. Because mistakes can have significant consequences, professional legal guidance can be particularly valuable.

How much does a special needs trust attorney cost?

Attorney fees vary based on the complexity of the plan, type of trust, additional estate planning documents, funding work, guardianship issues, tax considerations, and local requirements. Ask what services are included rather than comparing price alone.

Does it matter what state my special needs trust is in?

Potentially, yes. Special needs trusts involve federal requirements, but state trust law, Medicaid programs, guardianship rules, taxation, and trust administration can also matter. A move by the beneficiary, parents, or trustee can be an important reason to review the existing plan.

How can I find a reputable special needs trust attorney near me?

Look for an attorney who regularly handles special needs planning rather than someone who only occasionally prepares trusts. Ask about experience with first party and third party SNTs, SSI, Medicaid, trust funding, beneficiary designations, trustee selection, guardianship, probate, and long term planning. Professional organizations such as the Special Needs Alliance and National Academy of Elder Law Attorneys can also provide starting points for your research.

A Special Needs Trust Is Only as Good as the Plan Behind It

Creating the document should not be the finish line.

After an SNT is signed, families should understand:

• Who will fund it?
• Which assets will eventually go into it?
• Are beneficiary designations correct?
• Does the trustee understand the responsibility?
• Do grandparents and other relatives know about the plan?
• Are life insurance and retirement accounts coordinated appropriately?
• Who will advocate for the beneficiary when parents or caregivers are gone?
• How does the financial plan support the beneficiary’s future housing, care, independence, relationships, and quality of life?

And one more question should be added to that list:

• When will we review this plan again?

Families change.

Benefits change.

Laws change.

Care needs change.

People move.

Trustees change.

Assets change.

A special needs estate plan should be capable of changing with them.

These questions turn a trust document into an actual plan.

Find a Special Needs Trust Attorney Near You

If you’re caring for someone with disabilities, the purpose of estate planning isn’t simply deciding where money goes after you die.

It is deciding how that person’s future will be supported when you are no longer able to manage everything yourself.

A qualified attorney can help you evaluate whether a special needs trust is appropriate, determine what type of trust should be considered, coordinate it with your broader estate planning, and create a strategy for actually funding and administering it.

When you interview attorneys, don’t simply ask:

“Can you create a special needs trust?”

Ask:

“Can you help us create, fund, implement, and maintain a long term plan for our family member?”

That is a much more important question.

Redbird can help you find an estate planning attorney experienced with special needs trusts and planning for individuals with disabilities.

Start Your Search for a Special Needs Trust Attorney

Answer a few questions about your family’s planning needs to connect with an attorney who may be able to help.

This article is provided for general educational purposes only and does not constitute legal, tax, financial, benefits, or medical advice. Special needs trusts, Medicaid, SSI, guardianship, probate, and related planning issues can involve federal and state specific requirements. Consult an appropriately licensed attorney and other qualified professionals regarding your individual circumstances.