Practice
Special needs trust planning
When a child or grandchild with a disability gets SSI or Medicaid, money left to them outright can end those benefits. A special needs trust holds it for them instead, and pays for what benefits don’t.
Third-party trust
Funded by parents or grandparents, through their own trust, will or beneficiary forms. Nothing is owed back to Medicaid.
First-party trust
Holds the person’s own money, such as an inheritance or settlement. Rules on repayment apply, and we explain them first.
Pooled trust
A nonprofit holds and invests the money. We tell you when it fits better than a trust of your own.
Choosing the trustee
A sibling, a professional or both together. We write down how they should decide what to pay for.
Letter of intent
Routines, doctors, foods and fears, in your words. It isn’t binding, and it is the page a trustee reads most.
The rest of the family
Grandparents and aunts need to name the trust, not the person, in their own plans. We send them the wording.
At 18, decisions change hands
When a child with a disability turns 18, parents lose the right to decide for them. Many young adults can sign a power of attorney or a supported decision-making agreement, which leaves them in charge with help.
When they can’t, guardianship is the court’s way to name someone. Hedda Kolbeck handles those petitions and stands with the family at the hearing. We start the conversation around the 17th birthday.
Special needs trust questions
Can we just leave money to a sibling to look after?
You can, but the money is legally the sibling’s: their creditors, divorce or death can reach it. A trust keeps it for the person you meant it for.
What can the trust pay for?
Things benefits don’t cover, such as therapies, a phone, travel, furniture or a companion. Some payments, like rent, can reduce SSI, and the trustee should ask before making them.
Does the trust need its own tax return?
Often it does, once it holds money. We set it up with its own tax number and tell the trustee and your CPA what to file.
Plan with the whole family in the room
Parents, grandparents and the future trustee are welcome at the first meeting, here or by video.