Developmental Disabilities Awareness Month: Is Your Loved One with Special Needs Protected?

March is recognized as Developmental Disabilities Awareness Month, providing an opportunity to raise awareness and promote inclusion for individuals with disabilities. It also serves as a reminder of the importance of special needs planning, particularly for those who have a loved one with a disability. Proper estate planning can ensure financial security, long-term care, and continued eligibility for essential government benefits. If you live in Indiana and have a family member with special needs, the Indianapolis attorneys at Frank & Kraft encourage you to review your estate plan to ensure their future is well protected.

Understanding Developmental Disabilities Awareness Month

Developmental Disabilities Awareness Month was established to promote inclusion and highlight the contributions of individuals with disabilities in all aspects of life. Advocating for those with special needs goes beyond awareness. It should also involve taking proactive steps to secure their financial and legal future. This includes educating yourself on special needs planning, attending local advocacy events, and reviewing or updating your estate plan to safeguard your loved one’s long-term well-being.

Why Special Needs Planning Matters

Many individuals with disabilities rely on government programs such as Medicaid and Supplemental Security Income (SSI) for crucial support. However, these programs have strict financial eligibility requirements. Without proper planning, receiving an inheritance or financial gift could unintentionally disqualify a loved one from the benefits they depend on. A comprehensive estate plan can ensure that your loved one remains eligible for these programs while still receiving financial assistance through legally structured means.

Special needs planning is not just about finances; it is about creating a stable and supportive future. Without a structured plan, family members may face challenges in managing assets and ensuring continuous care. Thoughtful planning reduces the risk of mismanagement, family disputes, and unexpected financial hardships for a loved one with disabilities.

Key Actions to Take During Developmental Disabilities Awareness Month

This month is an ideal time to take concrete steps toward securing your loved one’s future. Consider the following actions to ensure your estate plan aligns with their needs:

1. Establish or Review a Special Needs Trust. A Special Needs Trust (SNT) is one of the most effective tools for providing financial support without jeopardizing government benefits. There are two primary types of Special Needs Trusts, a first and a third-party trust. A First-Party SNT is funded with assets belonging to the individual with disabilities, such as an inheritance or legal settlement. This type of trust requires a Medicaid payback provision upon the beneficiary’s passing. A Third-Party SNT is funded by parents, relatives, or other loved ones. Since it is not funded with the individual’s assets, it does not require Medicaid repayment, making it an ideal option in estate planning. A SNT holds funds for a beneficiary’s supplemental expenses, covering items and services that enhance their quality of life, such as:
   1. Specialized medical treatments
   1. Therapy and rehabilitation services
   1. Assistive devices
   1. Transportation
   1. Recreational and educational activities.
2. Create a Letter of Intent. A Letter of Intent is not legally binding, but it serves as a valuable guide for future caregivers and Trustees. It outlines important details about the individual’s daily routine, medical needs, personal preferences, and social interests. A well-drafted Letter of Intent can provide continuity of care and peace of mind. Taking the time to draft or update this document ensures that your loved one receives consistent and informed care in the future.
3. Explore an ABLE Account. An ABLE (Achieving a Better Life Experience) account is a tax-advantaged savings account designed for individuals with disabilities. Funds can be used for a variety of qualified expenses, including housing, education, and healthcare, without affecting eligibility for benefits like SSI and Medicaid. If your loved one does not already have an ABLE account, Developmental Disabilities Awareness Month is a great time to explore this option and open an account if appropriate.
4. Consider Guardianship or Power of Attorney. Depending on your loved one’s level of independence, you may need to consider legal arrangements to assist with decision-making. Establishing guardianship or granting Power of Attorney can provide you with the legal authority to manage financial, medical, and personal affairs on their behalf. Consulting an estate planning attorney can help you determine the best course of action for your family’s specific situation.
5. Consult an Indiana Special Needs Planning Attorney. Special needs planning can be complex, requiring careful legal and financial structuring to ensure long-term security. Working with an experienced Indiana estate planning attorney can help you navigate trust creation, benefit eligibility concerns, and other essential aspects of planning. An attorney can also help you update existing documents to reflect changes in laws or family circumstances.

Can We Help You Ensure That Your Loved One with Special Needs Is Protected?

For more information, please join us for an upcoming FREE seminar. If you would like assistance to ensure that a loved one with special needs is protected, contact the experienced Indianapolis special needs plannign attorneys at Frank & Kraft by calling (317) 684-1100 to schedule an appointment.

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