How Special Needs Planning Improves the Lives of People with Developmental Disabilities

Families of individuals with developmental disabilities face unique challenges when planning. Beyond daily care and medical support, they must ensure that their loved ones have financial stability, legal protections, and access to essential services even after caregivers can no longer provide direct support.

As March is Developmental Disabilities Awareness Month, it’s an opportune time to recognize the importance of long-term planning for people with disabilities. With the right legal and financial tools, families create a secure future where their loved ones live with dignity and independence.

The Importance of Special Needs Planning

Many families assume that personal savings or inheritance will be enough to support a child or family member with developmental disabilities. However, without proper planning, those funds may disqualify individuals from critical government benefits, such as Medicaid and Supplemental Security Income (SSI).

Special needs planning ensures that financial resources enhance a person’s quality of life without jeopardizing access to essential benefits. A well-structured plan includes legal protections, funding strategies and long-term care considerations.

Special Needs Trusts and Other Key Legal Tools

A special needs trust (SNT) is one of the most effective ways to provide financial support, while maintaining eligibility for government programs. Trusts allow families to set aside money for expenses not covered by Medicaid or SSI, such as housing, education, and recreational activities.

There are three main types of special needs trusts:

• First-party SNT: Funded with assets belonging to the individual with disabilities, often used for lawsuit settlements or inheritances
• Third-party SNT: Created by parents or relatives, funded with private assets for the beneficiary’s lifetime care
• Pooled SNT: Managed by a nonprofit, allowing families with fewer assets to benefit from professional trust administration

Without a properly structured trust, assets left to a disabled individual could unintentionally disqualify them from vital support programs.

Guardianship and Decision-Making Support

Many individuals with developmental disabilities need assistance managing finances, healthcare and daily responsibilities. Depending on their level of independence, families may consider:

• Guardianship: A court-appointed legal arrangement giving a caregiver authority over personal and financial decisions
• Power of Attorney (POA): A document allowing a designated person to manage financial or medical decisions on behalf of the individual
• Supported Decision-Making Agreements: A legal framework that allows individuals to retain autonomy while receiving guidance from trusted supporters

Each option provides varying levels of control, allowing families to choose the least restrictive alternative that meets their loved one’s needs.

ABLE Accounts

Achieving a Better Life Experience (ABLE) accounts are tax-advantaged savings accounts for individuals with disabilities. They allow beneficiaries to save money for qualified expenses without affecting SSI or Medicaid eligibility.

ABLE accounts can be used for education, housing, healthcare and assistive technology. Unlike traditional savings accounts, these funds are not counted toward asset limits for public benefits.

Life Insurance and Estate Planning

Many parents worry about what will happen to their children when they can no longer provide care. Life insurance policies can ensure ongoing financial support, with funds directed into a special needs trust. Families should also update their estate planning documents to reflect their child’s needs and appoint trusted individuals to oversee their care.

The Role of an Attorney in Special Needs Planning

Creating a financial and legal plan for a loved one with disabilities requires careful attention to detail. Without proper structuring, even well-intended gifts or inheritances could create financial hardship.

An elder law and special needs planning attorney ensures that:

• Trusts and financial accounts are properly structured to maintain government benefit eligibility
• Legal documents, such as guardianship agreements and powers of attorney, are tailored to the individual’s needs
• Families are aware of state and federal programs that can provide additional resources

Working with an attorney provides peace of mind, ensuring that a loved one’s future is secure and their quality of life is protected.

Key Takeaways

• Special needs trusts protect assets: These trusts allow families to provide financial support without jeopardizing eligibility for Medicaid or SSI.
• Guardianship and decision-making tools offer support: Legal arrangements, such as POAs, guardianship, and supported decision-making agreements, ensure that a loved one’s needs are met.
• ABLE accounts provide tax advantages: These accounts allow individuals with disabilities to save money without affecting government benefits.
• Estate planning ensures long-term security: Life insurance, updated wills, and carefully structured inheritance prevent financial disruptions.
• Legal guidance prevents costly mistakes: An attorney helps families navigate complex rules and secure the best possible future for their loved ones.

Planning for a loved one with developmental disabilities isn’t just about today—it’s about building a future where they are cared for, supported, and empowered. At The Werner Law Firm, we help families create personalized special needs plans that protect eligibility for government benefits, provide long-term financial security, and ensure the right legal supports are in place. From special needs trusts to guardianship and ABLE accounts, our experienced estate planning attorneys are here to guide you every step of the way.

If you have any questions, schedule a free appointment with us through our online appointment page.

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References: National Association of Councils on Developmental Disabilities “Developmental Disabilities Awareness Month” and Special Needs Alliance “Long-Term Care Planning for Children with Disabilities”