If something happened to you tomorrow, would your loved one with special needs still have the support they need? That’s a question many families quietly worry about. You want to protect your child, sibling, or relative—but you also want to make sure they continue receiving benefits like Supplemental Security Income (SSI) or Medical Assistance (Minnesota’s Medicaid program). That’s where special needs planning comes in. At Unique Estate Law, we help you build a plan that provides for your loved one without putting those important benefits at risk.
Why Special Needs Planning Matters
Government programs offer essential support, but they come with strict rules. To qualify for benefits like SSI or Medical Assistance, a person generally must have minimal income and assets—usually under $2,000. Even a small inheritance or cash gift could disqualify them from receiving the help they count on.
In Minnesota, the Medical Assistance program provides health coverage for people with disabilities, but eligibility is based on financial need. If you leave money directly to your loved one, it may be counted against them. On the other hand, a properly established Special Needs Trust can hold assets that are not counted toward eligibility limits. That means your loved one can receive both government assistance and supplemental support through the trust.
Without this type of planning, your good intentions could unintentionally jeopardize their benefits. That’s why it’s worth taking time to build a plan that works now and well into the future.
What Is a Special Needs Trust?
A Special Needs Trust is a legal arrangement that allows money to be set aside for someone with a disability—without interfering with their eligibility for public benefits. The person doesn’t own the assets in the trust, and that’s what keeps the funds from being counted against them.
The trust can be used to pay for a wide range of expenses not covered by public programs, such as:
- Therapies and medical treatments
- Educational opportunities
- Personal care or support services
- Hobbies, recreation, or travel
- Housing costs beyond what SSI provides
Types of Special Needs Trusts
There are two primary types of Special Needs Trusts:
- Third-Party Special Needs Trust: Funded by someone other than the beneficiary—typically a parent or grandparent. This trust can be created as part of a will or a living trust and funded now or in the future. These are known as Supplemental Needs Trusts in Minnesota.
- First-Party Special Needs Trust: Funded with the beneficiary’s own money, often from a personal injury settlement or inheritance. These trusts must meet specific legal requirements and typically include a payback provision for Medicaid.
We’ll help you decide which type of trust makes the most sense based on your family’s circumstances.
Choosing a Trustee in Minnesota
Choosing the right trustee is one of the most important decisions you’ll make. In Minnesota, the trustee must manage the trust for the sole benefit of the person with special needs. That means:
- Making payments for services and needs—not handing over cash
- Keeping detailed records of all expenses
- Following the trust’s instructions and reporting as needed
We can help you explore your options, whether you’re considering a family member, friend, or professional trustee.
ABLE Accounts: Another Planning Tool
ABLE (Achieving a Better Life Experience) accounts offer another way to support a loved one with a disability. These tax-advantaged savings accounts allow individuals with qualifying disabilities to save money without affecting their eligibility for SSI, Medicaid, or other public benefits. In Minnesota, ABLE accounts can be used to pay for qualified disability expenses like housing, education, transportation, or healthcare. Contributions to the account can come from family, friends, or the individual themselves.
While ABLE accounts have annual contribution limits, they work well alongside a Special Needs Trust. We often recommend using both tools together to give families greater flexibility and more options for long-term financial planning.
How We Can Help You Plan Ahead
At Unique Estate Law, we understand how personal this process is. We’ll take the time to understand your concerns and help you build a custom plan that supports your goals.
That plan may include:
- A Special Needs Trust tailored to your situation
- A letter of intent to guide future caregivers or trustees
- A will or living trust that ensures assets go where they’re supposed to
- Powers of attorney and health care directives for your own protection
- Guidance on setting up and coordinating an ABLE account alongside your trust
We want you to feel confident knowing that your loved one will be in good hands, no matter what tomorrow brings.
Contact an Experienced Minneapolis Special Needs Planning Attorney
Planning for a loved one with special needs brings peace of mind—for you and for them. With the right tools in place, you can protect their benefits, enhance their quality of life, and ensure they’re cared for in the way you intend. Let’s talk about what matters to your family. Contact Unique Estate Law today to schedule a consultation.