Planning with Purpose: Securing the Future for Loved Ones with Developmental Disabilities

Caring for a loved one with developmental disabilities goes far beyond meeting daily needs. It’s about creating a lasting support system—financial, legal, and emotional—that ensures they can live a life of dignity, independence, and stability even after caregivers are no longer around.

As we recognize Developmental Disabilities Awareness Month this March, it’s the perfect time to talk about how thoughtful planning can empower families and protect the well-being of individuals with disabilities for years to come.

Why Special Needs Planning Matters

Many families assume that leaving behind savings or an inheritance will provide sufficient support. Unfortunately, without the right planning, this well-intentioned gift could disqualify the individual from crucial public benefits like Supplemental Security Income (SSI) or Medicaid.

That’s where special needs planning comes in. With the right legal tools in place, families can:

• Protect government benefit eligibility
• Fund a higher quality of life
• Ensure their loved one’s future is secure and well-managed

Building Blocks of a Special Needs Plan

-Special Needs Trusts (SNTs)

These are powerful tools that allow families to set aside money for a person with disabilities without interfering with their eligibility for SSI or Medicaid. Funds from the trust can be used for housing, education, recreation, transportation, and other quality-of-life expenses.

Types of SNTs:

• First-party SNT – Funded with the individual’s own assets (e.g., from a lawsuit or inheritance)
• Third-party SNT – Funded by family members or others for the benefit of the individual
• Pooled SNT – Managed by a nonprofit, allowing multiple families to benefit from shared resources and professional management

A properly drafted trust is essential to avoid financial complications later.

-Guardianship & Decision-Making Options

Depending on the person’s abilities, families may consider:

• Guardianship – A court-appointed arrangement giving a caregiver authority to make personal or financial decisions
• Power of Attorney (POA) – A legal document that authorizes a trusted individual to act on the person’s behalf
• Supported Decision-Making Agreements – A less restrictive option where individuals maintain autonomy but receive guidance from chosen supporters

These options offer different levels of control and support—families should choose the path that best respects the individual's independence and needs.

-ABLE Accounts

Achieving a Better Life Experience (ABLE) accounts are tax-advantaged savings accounts for individuals with qualifying disabilities. They allow people to save for:

• Housing
• Medical care
• Education
• Assistive technology
  ...and more—without affecting Medicaid or SSI eligibility.

ABLE accounts are an excellent supplement to a special needs trust.

-Life Insurance & Estate Planning

Parents often ask, “Who will take care of my child when I’m gone?”
That’s why estate planning is so critical.

• Life insurance can provide long-term funding that flows into a special needs trust.
• Wills and trusts should be updated regularly to reflect the needs of the individual.
• Guardians and trustees should be carefully chosen and clearly appointed.

A complete estate plan gives families peace of mind that their loved one will be protected, cared for, and supported into adulthood and beyond.

Why Work with a Special Needs Planning Attorney?

Special needs planning is highly nuanced. Even one mistake, like naming a person with disabilities as a direct beneficiary in a will, could result in the loss of critical benefits.

A knowledgeable attorney can:

• Structure trusts and accounts to protect government aid eligibility
• Draft customized legal documents tailored to your family’s situation
• Identify additional programs and state resources that can help
• Guide you through the entire planning process, step by step

Key Takeaways

🔹 Special needs trusts preserve benefits and support a better quality of life
🔹 Decision-making tools offer the right level of support without removing autonomy
🔹 ABLE accounts offer tax-free savings and spending for qualified expenses
🔹 Estate planning ensures care continues beyond the caregiver’s lifetime
🔹 Legal guidance prevents mistakes that could impact financial security

Your Family’s Peace of Mind Starts with a Plan. At The Werner Law Firm, we work closely with families to design personalized special needs plans that meet their loved one’s current and future needs. From establishing special needs trusts to setting up ABLE accounts and estate plans, our experienced estate planning attorneys are here to help every step of the way.

If you have any questions, schedule a free appointment with us through our online appointment page.

You can also read reviews from some of the hundreds of clients we have helped over the years.

References: National Association of Councils on Developmental Disabilities “Developmental Disabilities Awareness Month” and Special Needs Alliance “Long-Term Care Planning for Children with Disabilities”