Understanding Special Needs Planning
Special needs planning is about more than just managing money—it’s about making sure your loved one has the support they need throughout their life. It brings together legal, financial, and personal care decisions to create a roadmap for the future.
What Constitutes Special Needs?
“Special needs” is a broad term. It includes individuals with physical, intellectual, emotional, or developmental disabilities. Some people require full-time care, while others live independently with some support. The term might cover autism, Down syndrome, cerebral palsy, or mental health conditions, among others. Each person’s circumstances are different, and so is every plan. Special needs planning recognizes those differences and builds a support system that aligns with them.
This type of planning isn’t only for children. Adults with disabilities also benefit from the right structure in place. We work with families to adapt their planning approach as needs evolve over time.
Why Is Special Needs Planning Important?
Without the right plan in place, well-meaning decisions can cause harm. A direct inheritance, for example, may unintentionally disqualify a child from public assistance. Government programs like Medicaid and Supplemental Security Income (SSI) often have strict limits on how much money a person can have. Even a few thousand dollars in a checking account could push them over the eligibility threshold.
Thoughtful planning helps ensure your loved one receives the care, housing, and support they need, without jeopardizing their benefits. It also gives you a say in what happens if you’re no longer able to advocate for them. Planning now helps preserve your child’s dignity and independence later.
Benefits of Consulting a Special Needs Planning Attorney
At Surprenant, Beneski & Nunes, we help families understand how to protect a loved one while coordinating benefits, legal tools, and future care needs. You’re not expected to know everything. Having someone walk you through the options makes a difficult task feel more manageable. It also helps avoid costly mistakes that can be hard to undo.
We can also coordinate with your financial planner, accountant, and other professionals to ensure everything aligns with your child’s long-term care and financial goals.
Legal and Financial Planning Components
Building a plan for a loved one with special needs involves careful coordination of legal protections, financial tools, and benefit programs to ensure long-term security. In this section, we’ll walk you through how each component works together to support your family’s goals.
How an Estate Plan in Massachusetts Helps a Child with Special Needs
Your estate plan lays the foundation for your child’s future security. It includes tools like wills, powers of attorney, health care proxies, and special needs trusts. These documents work together to manage assets, make medical decisions, and ensure continued support for your loved one after you’re gone.
Each piece plays an important role. A will can direct your assets into a trust, while a durable power of attorney allows someone to handle your financial matters. A health care proxy gives someone you trust the ability to make medical decisions if you’re unable to. When these documents are built to work together, they create a strong safety net for your family.
How Do I Protect My Special Needs Child?
Protecting your child involves more than financial support. It also means:
- Setting up the right kind of trust to avoid disqualifying them from public programs
- Choosing a trustee who understands the child’s needs and how to manage trust distributions
- Designating a guardian or caregiver who shares your values and knows your child well
It’s also about planning for quality of life. Will your child be able to travel? Take art classes? Attend social activities? A thoughtful plan takes all of this into account.
A Parent’s Estate Plan Impacts Their Loved One
What you do with your own estate directly affects your child. If you leave them a lump sum in your will or name them as a life insurance beneficiary, it could interfere with their eligibility for programs like Medicaid or SSI. That’s why we help families adjust their estate plans accordingly.
It’s important to look at retirement accounts, pensions, and investment accounts as well. Each beneficiary designation should align with your broader planning goals.
Appointing a Legal Guardian to Look After the Child
If your child will need help making personal, medical, or financial decisions as an adult, guardianship may be appropriate. In Massachusetts, you can request the court to appoint a legal guardian. This allows someone you trust to make decisions on your child’s behalf. Not every child needs a guardian, but it’s something worth discussing.
Alternatives like supported decision-making or limited guardianship might also be appropriate. These options allow the individual to retain more independence while still receiving help where needed.
Considerations for Parents
As a parent, you might worry about what happens if something happens to you. Will your child be safe? Will they have a voice? Will their needs be met? These are real concerns. Planning now gives you more control and lets you provide clear direction for others to follow.
We encourage parents to involve siblings or extended family in the planning process if possible. Clear communication now can reduce conflict and confusion in the future.
Special Needs Trusts
When you’re planning for a child with disabilities, one of the most effective tools at your disposal is a special needs trust. It offers a way to set aside funds without interfering with critical public benefits.
Understanding Special Needs Trusts (SNT)
A special needs trust is a legal arrangement that holds money for the benefit of a person with disabilities. It allows them to receive financial support without counting against income or asset limits for government programs. There are different types of SNTs, each serving a specific purpose. The right one depends on who is funding the trust and the goals of the family.
A third-party SNT is funded by parents, grandparents, or others and does not require payback to the state. A first-party SNT, on the other hand, is funded with the individual’s own assets and must include a Medicaid payback provision.
Benefits of a Special Needs Trust
A properly drafted trust:
- Keeps the beneficiary eligible for benefits like Medicaid or SSI
- Allows funds to be used for things like personal care, transportation, education, recreation, and more
- Helps avoid court involvement in financial matters
- Gives you peace of mind knowing the money will be managed responsibly
It also protects the beneficiary from exploitation or poor financial decisions. The trustee can manage and disburse funds according to the rules laid out in the trust.
Establishing Special Needs Trusts
Setting up a trust involves choosing the type, naming a trustee, and making decisions about how the funds should be used. You can fund the trust during your lifetime or include it as part of your estate plan. It’s important to be clear about your wishes and the trust’s intended use.
We’ll guide you through:
- Deciding which assets should go into the trust
- Choosing an individual or corporate trustee
- Defining allowable distributions to enhance quality of life
You can also allow other family members to contribute to the trust over time, especially through gifts, inheritances, or life insurance policies.
Testamentary or Standalone Trusts
You can create a trust that springs into action after your death (testamentary), or one that exists while you’re alive (inter vivos or standalone). A testamentary trust is built into your will. A standalone trust can receive gifts from other family members, life insurance proceeds, or inheritances. Both can be effective when used correctly. Standalone trusts provide more flexibility and can begin benefiting the individual sooner. They also simplify funding from multiple sources.
Payback Trust Option
A payback trust is funded with the beneficiary’s own assets, such as a legal settlement or inheritance. These trusts must include a provision that repays the state for Medicaid expenses upon the person’s death. They help preserve eligibility but require careful planning.
These trusts are especially useful when someone under 65 receives a personal injury settlement or direct inheritance. Without this option, they would likely have to spend down their assets and reapply for benefits.
Financial Resources and Public Benefits
Understanding how public benefits work—and how they interact with your estate plan—is key to protecting your loved one’s long-term care and financial support. In this section, we’ll cover available resources and how to preserve access to them.
Public Benefit Options
Public benefits help cover the basics of care and living expenses. These may include:
- Supplemental Security Income (SSI)
- Social Security Disability Insurance (SSDI)
- MassHealth (Massachusetts’ Medicaid program)
- Section 8 housing
- Department of Developmental Services (DDS) services
- SNAP (Supplemental Nutrition Assistance Program)
- Fuel assistance programs
We help families understand which benefits apply to their situation and how to maintain access.
Preserving Eligibility
Public benefit programs often have strict financial limits. A single wrong step—like leaving money directly to your child—can make them ineligible. A special needs trust or ABLE account can help preserve eligibility while still providing supplemental support.
Preserving eligibility also means avoiding unintentional disqualifications. For example, receiving an inheritance or cash gift could cause benefits to stop, sometimes for months. A trust acts as a buffer to prevent these disruptions.
Achieving a Better Life Experience (ABLE) Accounts
ABLE accounts are tax-advantaged savings accounts for people with disabilities. Individuals can save up to a certain amount each year without affecting their eligibility for public benefits. The funds can be used for housing, transportation, health care, and more. They offer flexibility but have limitations compared to a special needs trust.
ABLE accounts are best for smaller sums of money and can be managed by the individual or their guardian. We often recommend using them in combination with a trust for added flexibility.
Future Planning Considerations
Planning ahead means looking beyond legal documents and financial tools. It’s about preparing for the real-life transitions your loved one will face—and making sure they have the support they need every step of the way.
Future Care Considerations
Think about who will coordinate your child’s care when you can’t. Will there be someone to attend medical appointments, oversee therapies, or help with daily living? Identifying that person—and preparing them—is a big part of long-term planning.
In some cases, a care manager or social worker may help support daily needs. Your planning documents should clearly name the responsible individuals.
Creating a Letter of Intent
A letter of intent is not a legal document, but it serves as a guide for future caregivers. It can include:
- Daily routines
- Medical history
- Communication style
- Personal likes and dislikes
- Goals for the future
- Religious or cultural values
This letter helps others understand your child as a person, not just a legal responsibility. We help clients include it as part of their overall estate planning package.
Plan for Future Housing Needs
Your child might stay at home, move into a group residence, or live independently with support. Housing decisions depend on finances, benefits, and personal preferences. Planning for these needs early helps avoid last-minute decisions during a crisis.
In Massachusetts, options include shared living arrangements, adult foster care, and supported apartment living. Each has its own requirements and funding sources.
Transition Planning
As your child approaches adulthood, you’ll face new decisions about education, employment, guardianship, and benefits. Transition planning should start in the early teens and continue through age 22 or beyond. The goal is to promote independence and security.
Transition planning often includes preparing for IEP changes, exploring vocational programs, applying for adult services and benefits, and building support teams for adulthood.
Planning and Peace of Mind
Planning now helps you sleep better at night. It removes the guesswork for future caregivers and gives your child a strong foundation for years to come. The earlier you begin, the more options you have.
We’ve seen firsthand how a solid plan can ease stress for the entire family. It’s one of the most loving things you can do.
Avoid Mistakes with Estate Plans Involving Special Needs Children
Even well-intentioned families can make mistakes. Common missteps include:
- Naming the child directly in a will or as a life insurance beneficiary
- Failing to update retirement accounts or investment designations
- Waiting too long to plan, limiting available options
- Using a generic trust instead of a purpose-built special needs trust
Other errors include relying solely on verbal instructions or assuming siblings will “figure it out.” Written, legally sound instructions help avoid disputes and confusion. At Suprenant, Beneski & Nunes, we will review your existing plan and identify any gaps or risks. Small changes can make a big difference.
The Importance of Professional Assistance
Special needs planning involves many moving parts, from legal documents to public benefit rules. Working with someone who understands how these pieces fit together can help you build a plan that truly protects your loved one.
How Surprenant, Beneski & Nunes Can Help Plan for Your Child’s Future
We work closely with families across Southeastern Massachusetts to design thoughtful, legally sound plans. Our team understands how public benefits work, how to structure trusts, and how to bring together the financial and emotional sides of planning. Most importantly, we take the time to understand your family’s needs and goals. Every plan is personal, and we treat it that way.
We also offer ongoing support. Life changes—so should your plan. We’re here to update your documents as needed and help you revisit decisions as your child grows.
Contact Our Southeastern Massachusetts Special Needs Planning Attorneys Today
Whether you’re just getting started or need help refining an existing plan, we’re here to support you. At Surprenant, Beneski & Nunes, we help families protect what matters most. Let’s build a plan that gives your loved one the future they deserve. Call us today to schedule a consultation.
