Why special needs planning is not regular estate planning
Special needs financial planning exists because the systems designed to help people with disabilities have rules that punish ordinary financial decisions. An inheritance of fifty thousand dollars can disqualify a person from SSI and Medicaid — benefits worth far more than the inheritance over a lifetime. A well-meaning grandparent who opens a savings account in the child's name can create the same problem.
The planning is built around one principle: the individual with special needs must have access to resources that improve their quality of life without crossing the asset and income thresholds that trigger benefit disqualification. That requires a special needs trust, careful beneficiary designations, and sometimes an ABLE account — all coordinated with the family's broader estate plan.
Most financial advisors do not know these rules. Most estate attorneys do, but they are not managing the investments, the insurance, or the funding strategy. The gap between the legal structure and the financial plan is where families get hurt. We sit in that gap.
What working with us looks like
First meeting — the full picture
We meet at our Paramus office, at your home, or on video. Bring the current estate documents, any trust paperwork, the individual's benefit statements, and your insurance policies. We ask about the care plan, the family structure, and the gaps. By the end of the hour we know what the plan needs.
Second meeting — the written plan
We return with a written plan that covers the trust funding strategy, the ABLE account recommendation, the beneficiary designation review, the insurance analysis, the successor trustee guidance, and the next steps. The plan is yours to keep whether or not you work with us going forward.
A note on fit
When this might not be right for you
We are not the right fit for every special needs family. Some situations where we would say so:
- Anyone looking for an attorney to draft the special needs trust. We coordinate with your attorney on the financial side, but we do not do the legal drafting.
- Anyone looking for help navigating the SSI or Medicaid application process. We model the financial impact of benefits, but the application itself is best handled by a benefits counselor or disability attorney.
- Anyone looking for an advisor to also serve as the successor trustee. We plan and advise. The trustee role belongs to a family member, a professional trustee, or a pooled trust organization.
- Anyone who needs the plan to be completed in a matter of days. Special needs planning takes time, coordination with attorneys, and multiple reviews.
If any of that describes your situation, we would rather say so early.
Frequently asked questions
Will an inheritance disqualify my child from SSI and Medicaid?
In most cases, yes. An outright inheritance that brings the individual's countable assets above the SSI resource limit will disqualify them. The fix is a properly drafted third-party special needs trust that holds the assets for the individual's benefit without being counted as their own resource.
What is the difference between a special needs trust and a regular trust?
A special needs trust — also called a supplemental needs trust — is designed to hold assets for a person with disabilities without disqualifying them from means-tested government benefits. A regular trust does not have that protection. The distinction is critical, and the trust must be drafted by an attorney experienced in this area.
What is an ABLE account and should we open one?
An ABLE account allows an individual with a qualifying disability — onset before age twenty-six in most states — to save money without affecting SSI or Medicaid eligibility, up to certain limits. The account can be used for qualified disability expenses. Whether it makes sense depends on the family's broader plan, and we model it alongside the trust.
How do we choose a successor trustee?
The successor trustee should be someone who understands the individual's needs, can manage the administrative responsibilities, and will act in the individual's best interest over decades. Family members, professional trustees, and pooled trust organizations are all options. We help families evaluate the choices and set expectations in a letter of intent.
Do we need life insurance to fund the trust?
Often, yes. Life insurance is one of the most common funding mechanisms for a special needs trust because it provides a known amount at the time it is needed most. We evaluate the coverage amount, the policy type, and the beneficiary designation. We do not sell insurance. We tell you what to buy and how to title it.
How often should the plan be reviewed?
At least annually, and whenever a significant change occurs — a change in benefits, a change in the care plan, a change in the family's finances, or a change in the law. Special needs planning is not a set-and-forget exercise. The circumstances shift, and the plan has to shift with them.
Where do you meet with families?
Most meetings happen at our Paramus office or at the family's home. We also meet on video when the schedule requires it. In-person service is the default, and we schedule flexibly around caregiving responsibilities.