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Creating a Special Needs Trust to Support a Loved One with a Disability
Creating a Special Needs Trust to Support a Loved One with a Disability
- posted: Sep. 15, 2025
Parents of a special needs son or daughter face many challenges. During childhood, there are often concerns about the best way to provide an appropriate education, particularly if the youth has a busy schedule of treatment and therapy. As time passes, financial worries often become more pressing, particularly if an adult son or daughter is unable to support themselves due to their disability.
In many cases, a special needs trust is the right solution for families who want to make sure that lasting financial support is in place, even after the disabled individual’s parents have passed away. Sometimes referred to as a supplemental needs trust, this type of legal instrument offers security without jeopardizing eligibility for government benefits.
Many special needs adults rely on government programs such as Supplemental Security Income (SSI) and Medicaid (MassHealth) to cover healthcare costs and daily living expenses. However, these benefits are only available to individuals who meet the programs’ strict asset and income limitations. Giving money outright to a disabled individual likely would disqualify them. However, assets in an irrevocable special needs trust are not considered when determining eligibility, so the beneficiary can retain access to vital assistance programs.
When parents or other loved ones provide funding, it is referred to as a third-party special needs trust. There are also first-party trusts where the assets come from the beneficiary. This might occur if someone received compensation from a claim related to a disabling accident. Funds from a special needs trust can be used to pay for services and items not covered by government benefits, such as medical care, equipment, education, travel and personal care. A knowledgeable Massachusetts estate planning attorney can help you get started.
Your attorney will draft a trust document tailored to the specific circumstances of the special needs individual. This document outlines the trust's purpose, terms, and the role of the trustee, who is responsible for managing the trust's assets and ensuring that distributions enhance the beneficiary's life without affecting government benefit eligibility.
Chapdelaine, Ryan & Associates in Winthrop prepares special needs trusts and other estate planning instruments for Massachusetts residents. For a consultation regarding your particular situation and objectives, please call 617-870-6728 or contact us online.
Creating a Special Needs Trust to Support a Loved One with a Disability
- posted: Sep. 15, 2025
Parents of a special needs son or daughter face many challenges. During childhood, there are often concerns about the best way to provide an appropriate education, particularly if the youth has a busy schedule of treatment and therapy. As time passes, financial worries often become more pressing, particularly if an adult son or daughter is unable to support themselves due to their disability.
In many cases, a special needs trust is the right solution for families who want to make sure that lasting financial support is in place, even after the disabled individual’s parents have passed away. Sometimes referred to as a supplemental needs trust, this type of legal instrument offers security without jeopardizing eligibility for government benefits.
Many special needs adults rely on government programs such as Supplemental Security Income (SSI) and Medicaid (MassHealth) to cover healthcare costs and daily living expenses. However, these benefits are only available to individuals who meet the programs’ strict asset and income limitations. Giving money outright to a disabled individual likely would disqualify them. However, assets in an irrevocable special needs trust are not considered when determining eligibility, so the beneficiary can retain access to vital assistance programs.
When parents or other loved ones provide funding, it is referred to as a third-party special needs trust. There are also first-party trusts where the assets come from the beneficiary. This might occur if someone received compensation from a claim related to a disabling accident. Funds from a special needs trust can be used to pay for services and items not covered by government benefits, such as medical care, equipment, education, travel and personal care. A knowledgeable Massachusetts estate planning attorney can help you get started.
Your attorney will draft a trust document tailored to the specific circumstances of the special needs individual. This document outlines the trust's purpose, terms, and the role of the trustee, who is responsible for managing the trust's assets and ensuring that distributions enhance the beneficiary's life without affecting government benefit eligibility.
Chapdelaine, Ryan & Associates in Winthrop prepares special needs trusts and other estate planning instruments for Massachusetts residents. For a consultation regarding your particular situation and objectives, please call 617-870-6728 or contact us online.
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