Special Needs Planning
Special Needs Planning
Families with a disabled child or family member face a unique planning challenge: providing financial support without disqualifying that individual from means-tested government benefits like Medicaid and Supplemental Security Income. O’Gorman and Sandroni help St. Louis-area families structure special needs trusts and related planning to protect both benefits and quality of life.
How Special Needs Trusts Work
A properly drafted special needs trust holds assets for the benefit of a disabled individual without those assets counting against benefit eligibility limits, allowing the trust to pay for items and services that improve quality of life beyond what government programs cover.
Coordinating with the Broader Estate Plan
Special needs planning must be coordinated with the rest of the family’s estate plan, including grandparents or other relatives who may want to leave gifts to the disabled individual, to make sure no inheritance is left outright in a way that jeopardizes benefits.
Frequently Asked Questions
A first-party special needs trust holds assets belonging to the disabled individual, such as a settlement, and requires a Medicaid payback provision, while a third-party trust holds assets from family members and does not require repayment to Medicaid.
Direct gifts or inheritances can disqualify a disabled individual from means-tested benefits, so it’s generally better for gifts to flow through a properly drafted special needs trust instead.
Since 1985 Sean O’Gorman and Andrew Sandroni have been representing clients in all areas of the law. O’Gorman & Sandroni, P.C. was founded in 1989 on the principles of honesty, integrity, and the aggressive pursuit of our client’s goals.