To Your Better Future

Are you a parent of a special needs child? Do you often worry about your child’s care after you die? Such thoughts are common for parents, grandparents, and providers of special needs individuals. If you care for a loved one with special needs, consider educating yourself about planning for such a loved one. One important step is understanding the government benefits available to support individuals with disabilities. This information might seem overwhelming—and yes, a bit of a mouthful—but taking the time to understand it can make a world of difference for your child’s future. Step by step, you can learn which benefits apply, how to protect eligibility, and how to plan for a life where your child is safe, cared for, and supported. You don’t have to do it all at once—just start with one piece at a time. So, let’s get started- Broadly, these benefits fall into three categories: Entitlement Benefits, Needs-Based (or Welfare) Benefits, and Sliding-Scale Benefits. Entitlement Benefit...

Many parents open a 529 plan with the expectation that their child will one day attend college or pursue higher education. When a child later receives a disability diagnosis, it is natural to question whether a 529 is still the right savings vehicle. For children with intellectual disabilities (ID) or significant developmental challenges, a 529 may ultimately prove to be a poor fit. That’s because 529 funds are limited to education-related expenses —such as tuition, required fees, books, supplies, and eligible room and board. Most disability-related costs, including therapy, personal care, housing, transportation, and daily support needs, do not qualify. Using 529 funds for these purposes can trigger taxes and penalties , creating unexpected consequences for families. A common myth is that if the beneficiary is disabled, 529 withdrawals are automatically penalty-free and tax-free. This is not entirely true. While the 10% federal penalty on earnings may be waived when the beneficiary ...

When it comes to saving for college, 529 plans are one of the most powerful tools available. They offer tax-deferred growth and tax-free withdrawals when used for qualified education expenses. But while these accounts are generally straightforward, things can get more complicated when a 529 plan is owned by a trust. Let’s break down what happens when a trust, not an individual, is the account owner, and why that matters. The Role of the Custodian in a 529 Plan In a typical 529 account, the custodian (often a parent or grandparent) maintains full control over the account. This means they can: Select and change the beneficiary (i.e., the student who will use the funds), Decide how much money to contribute, Determine when to withdraw funds and for what purposes. Importantly, custodians usually do not owe fiduciary duties to the beneficiary. That means they can change the beneficiary to someone else (as long as the new beneficiary is a qualified family member) without the o...

Several important changes to Supplemental Security Income (SSI) went into effect in September 2024. This blog may be a little delayed in covering them, but I believe it is never too late to try and simplify complex policies. My goal here is to break down the updates into plain language and explain them with everyday examples. Whether you are a parent, caregiver, or someone navigating SSI yourself, I hope this post makes things a little easier to understand. If you have a loved one on SSI, or if you receive SSI yourself, you know how stressful it can be to follow all the rules. One small mistake can lead to reduced benefits, and that’s the last thing any family needs. But here’s some good news. The Social Security Administration announced a few important changes that will make life a bit easier for SSI recipients and their families. Here’s what’s new, and why it matters. Renting from a Parent or Child Just Got Simpler In most states, when an SSI recipient rents from a pare...

 For parents of higher-functioning children with disabilities, one of the key decisions when their child turns 18 is whether guardianship is necessary. While the goal is often to help children live as independently as possible, there are situations where additional support may be needed, particularly in making significant decisions. Striking the right balance between independence and support is crucial, and careful planning can help ensure the best choices are made for the child’s future. I often suggest to parents that they start by creating a list of the pros and cons of guardianship. It’s a helpful way to explore how guardianship might fit into your child's life and what kind of role you would like to play in their future. Here are a few questions to consider: Will the Parent Need to Step in for Important Decisions? As parents, it's natural to want your adult child to feel independent and capable, and sometimes there's a concern that guardianship may carry a stigma...

1.   Procrastinating Estate Planning Altogether   For many parents with children with special needs, estate planning feels very overwhelming, and it’s easy to put it off for another day. Unfortunately, delays can be costly, leaving your child unprotected in case of an unexpected event.  If both parents pass away without a proper plan in place, a direct inheritance can disqualify them from vital public benefits. The only option in such circumstances may be to establish a trust with a Medicaid payback provision, meaning that any remaining assets in the trust must be paid back to the state after the child’s death. Furthermore, these trusts can be very restrictive.   Additionally, nominating a guardian is crucial. Unlike typical children, special needs children may require a guardian even after they reach the age of legal adulthood. Without proper planning, the court may step in to make decisions for your child — decisions that may not align with your wishes. ...

When parents think about estate planning for their high-functioning child with special needs, they often assume that a Special Needs Trust (SNT) isn’t necessary, especially if the child is not likely to be receiving public benefits like Supplemental Security Income (SSI). However, planning for your child's future goes beyond government assistance. What happens if you unexpectedly pass away? Who will manage your child’s inheritance, and will it be protected from financial exploitation or poor decision-making? The truth is, that setting up an SNT can provide vital protection and peace of mind, even for high-functioning children who are largely independent. A well-structured trust can safeguard their financial future, ensuring that your child has the support they need to navigate adulthood with security and confidence. Whether it's protecting assets from creditors, preventing misuse of funds, or simply providing financial oversight, a Special Needs Trust is a powerful tool in yo...

When your child turns 18, it's a moment of pride and transition. They're stepping into adulthood, gaining independence, and making decisions for themselves. But as exciting as this milestone is, it’s easy to overlook one critical detail: the change in legal authority over their healthcare decisions. Many of us with children who have special needs are familiar with the importance of establishing guardianship. However, when it comes to our typical, newly turned 18-year-olds, we often forget to consider an equally important step — ensuring they have a healthcare proxy in place. Why is a Health Care Proxy Important? Once your child turns 18, they are legally recognized as an adult, meaning you no longer have the automatic right to make medical decisions for them, even in emergencies. While they may still rely on you for emotional support, financial advice, and countless other things, if they are unable to make decisions due to illness or injury, healthcare professionals canno...

As parents, navigating the transition to adulthood for a child with disabilities can be overwhelming, especially when it comes to legal responsibilities. When your child turns 18, they are legally considered an adult, which often comes as a surprise to many parents. This shift can create significant challenges, particularly in making medical and educational decisions. Here’s why securing guardianship is crucial for parents of disabled children as they reach adulthood. Understanding Legal Capacity Once a child turns 18, they are presumed to have the legal capacity to make their own decisions, regardless of their cognitive abilities. This means that if your child has an intellectual disability, they may not be able to provide informed consent for medical treatments or make important life choices. In such cases, having a legal guardian is essential to ensure that decisions can be made on their behalf. Does My Child Need a Guardian? Deciding whether to become your child’s legal guardian ...

The Achieving a Better Life Experience (ABLE) Act, signed into law in 2014, created a powerful savings tool for individuals with disabilities. ABLE accounts allow people with disabilities to save money without losing access to essential government benefits like SSI and Medicaid. Whether for daily expenses or future needs, these accounts can play a crucial role in achieving financial independence. In this blog I’ll explain what ABLE accounts are, how they work, and why they matter. What is an ABLE Account and Why do You need it? An ABLE account is a tax-advantaged savings account designed specifically for individuals with disabilities and their families. Many individuals with disabilities rely on public benefits such as SSI (Supplemental Security Income) and Medicaid to meet their basic needs. These programs, however, impose strict asset limits—typically no more than $2,000 in savings—which forces individuals to stay impoverished to retain their benefits. An ABLE allows you to save ...

Have you ever wondered what would happen to your assets, loved ones, or financial future if something unexpected occurred? Whether you’re preparing for retirement, leaving a legacy for your family, or simply ensuring peace of mind, understanding the difference between estate planning and financial planning is crucial. These two strategies are often confused, but they each play a distinct role in shaping your financial future.   Estate Planning vs. Financial Planning: A Breakdown Estate planning is the process of determining how your assets will be managed and distributed both in the event of incapacity and after you're gone. Each person's goals shape the type of estate plan they need. For some, estate planning may be as simple as a will to ensure assets are passed to loved ones, while others may require a revocable living trust-centered plan to avoid probate and save on taxes, or even more complex strategies like dynasty trusts to provide for future generations. Estate pl...

Relocating to a new state is exciting—new surroundings, new opportunities—but amidst the hustle and bustle, have you considered how the move might affect your estate planning documents? Technically, your will, trust, and power of attorney are still valid. The U.S. Constitution requires states to honor legal documents from other states. But here’s the catch: while they should be accepted, the practical reality isn’t always so straightforward. Estate planning isn’t just about having the right documents; it’s about ensuring they work when you need them most. And that’s where moving to a new state can complicate things. Different states have different rules, and sometimes institutions can be picky about the forms they accept. So, while your documents might not need a complete overhaul, getting them reviewed by a local estate planning attorney is a smart move. Is My Will Still Valid? What About My Revocable Trust? Your will is still valid, but state laws vary, and some provisions might not ...

As a parent of a disabled child approaching adulthood, you may be wondering how child support payments will affect their Supplemental Security Income (SSI). The simple answer is "yes"—child support does reduce your child’s SSI benefits. Here's how it works: Child support payments ordered by a court are considered income for the child under the SSI program, even if the payments go directly to the other parent. While your child is under 22 and still attending school, one-third of the child support payments are excluded from SSI calculations, meaning two-thirds are counted as income. However, once your child turns 22, the entire child support payment is counted dollar for dollar, reducing their SSI benefit. Are There Ways to Receive Child Support Without Affecting SSI? Thankfully, there are strategies to receive child support without negatively impacting your child’s SSI benefits. Here are some options: 1. Assign Child Support to a Special Needs Trust      You can assig...

Estate planning can feel overwhelming, especially with changing tax laws. One tool that's gaining popularity among high-net-worth couples is the Spousal Lifetime Access Trust (SLAT). If you're looking to preserve your wealth and minimize estate taxes, understanding SLATs is crucial. Here’s a breakdown of what they are, how they work, and why you should consider setting one up before January 1, 2026. What's a SLAT? A SLAT is an irrevocable trust that one spouse creates for the benefit of the other. The goal? To transfer assets out of your estate while still providing financial security for your spouse. This strategy can help you use the current high federal estate tax exemption before it potentially drops. Current and Future Tax Exemptions Right now, each person can transfer up to $13.61 million without incurring federal estate taxes. For married couples, that means you can shield up to $27.22 million. But here's the kicker: On January 1, 2026, this exemption is ...

If you are a parent or guardian of a person with disabilities, you must have wondered why not leave wealth or resources for your child or relative with special needs outright? If a person with a disability who is receiving or who anticipates receiving government benefits (Supplemental Security Income, Medicaid, Food Stamps, etc.) inherits a significant amount of wealth outright, it can negatively impact their eligibility for government benefits. They will first have to exhaust such an amount or legacy in order to receive any government benefits. Example- John, a person with down syndrome works at a grocery store and makes about $500/month. John receives SSI and Medicaid benefits. John’s grandmother Martha died and left him a savings account with $200,000. John is automatically disqualified for SSI and Medicaid. In order to qualify for SSI and Medicaid, John will first have to spend-down to the extend that he keeps no more than $2,000. How can a Special Needs Trust (SNT) help? A special...