Helping a loved one financially could accidentally cost them their benefits—unless it’s planned correctly.
When someone you love has a disability, estate planning takes on a deeper meaning. It’s not just about passing down assets — it’s about making sure your loved one is supported, protected, and cared for long into the future.
Many people are surprised to learn that leaving money directly to a person with disabilities can actually cause serious problems. Programs like Supplemental Security Income (SSI) and Medicaid often require recipients to have very limited financial resources — sometimes as little as $2,000 in assets. If a family member leaves money directly to them, it can unintentionally disqualify them from benefits they rely on for medical care, housing, and support services.
That’s where thoughtful planning makes all the difference.
Special Needs Trusts: A Powerful Solution A Special Needs Trust (SNT) allows families to set aside money for a loved one without interfering with their eligibility for government benefits. Funds in the trust can be used to improve quality of life — things like:
•Education
•Transportation
•Therapy
•Recreation
•Technology
•Personal care items
In other words, the trust supplements benefits rather than replacing them.
Other Helpful Planning Tools:
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