For families who have a loved one with special needs, preparing for the future requires more than daily care and unconditional love. It involves intentional legal planning to ensure your child or dependent is protected, supported, and able to live as independently as possible, even when you are no longer able to provide that care yourself.
Legal planning for special needs may feel overwhelming, but the right legal tools can offer peace of mind, continuity of care, and financial stability. Below are key legal instruments that every special needs family should consider.
Special needs trusts
A special needs trust allows families to set aside money for a loved one with a disability without risking their eligibility for means-tested public benefits such as Supplemental Security Income (SSI) and Medicaid.
Assets placed in a properly structured special needs trust are not counted as resources by public benefit programs. The trust can pay for a variety of supplemental needs such as therapies, educational programs, travel, entertainment, personal care services, and other quality-of-life expenses not covered by public funds.
There are three main types of special needs trusts:
• A first-party trust, funded with the beneficiary’s own assets
• A third-party trust, funded by parents, relatives, or others
• A pooled trust, managed by a nonprofit that combines funds from multiple beneficiaries while maintaining separate accounts
Each type serves a different purpose, and selecting the right one depends on your family’s specific circumstances.
Conservatorship
When a child with special needs reaches adulthood, parents no longer have automatic legal authority to make decisions on their behalf. In some cases, it may be necessary to seek a limited conservatorship through the court system.
A limited conservatorship allows a parent or other trusted adult to retain legal authority over specific areas such as education, medical care, housing, or finances, while still encouraging as much independence as possible. The court evaluates the individual’s abilities and determines the appropriate scope of the conservatorship.
This legal process can take time, so it is recommended to begin planning well before your child turns 18.
Powers of attorney and health care directives
If your loved one is able to understand and sign legal documents, a durable power of attorney and advance health care directive may serve as alternatives to conservatorship.
A durable power of attorney allows someone you trust to manage financial matters if your loved one becomes incapacitated. An advance health care directive authorizes someone to make medical decisions and express your loved one’s wishes about treatment and end-of-life care.
These documents provide flexibility and preserve more autonomy for the individual, while still ensuring that support is available when needed.
Letter of intent
A letter of intent is not a legal document, but it is a valuable resource that offers guidance to future caregivers. It includes essential information about your loved one’s daily routines, likes and dislikes, medications, communication preferences, religious beliefs, behavioral triggers, and anything else that would help someone provide care with consistency and compassion.
Though not legally binding, a letter of intent can serve as an informal roadmap to help ensure continuity of care in your absence.
Public benefit planning and ABLE accounts
Individuals with disabilities may be eligible for public benefits that have income and asset limits. In addition to special needs trusts, an ABLE (Achieving a Better Life Experience) account can be a powerful tool.
ABLE accounts are tax-advantaged savings accounts that allow individuals with qualifying disabilities to save for qualified disability-related expenses without losing eligibility for SSI or Medicaid. Funds can be used for housing, education, health care, transportation, and more.
Final thoughts
Planning for the long-term care of a loved one with special needs is an act of love and foresight. The right legal tools can protect benefits, promote independence, and ensure your loved one receives the care they need both now and in the future.
Consulting with an attorney who is experienced in special needs planning can help you navigate the available options and create a comprehensive plan tailored to your family’s goals. Call us today at (530) 343-3454.