Planning your estate is one of the most thoughtful and loving things you can do for your family. If one of your heirs lives with a disability, however, your planning becomes even more critical—and a bit more complex. Without the right tools, even a well-meaning inheritance could accidentally disqualify your loved one from important public benefits like Supplemental Security Income (SSI) or Medicaid.

The good news? There are strategies that allow you to leave a meaningful legacy while preserving your loved one's access to the care they need. As a Pennsylvania estate planning attorney, I specialize in helping families build plans that provide both protection and peace of mind.

Here are the key tools to consider when planning for an heir with a disability:

1. Special Needs Trusts (SNTs)

A Special Needs Trust is one of the most effective ways to provide for a loved one with a disability without disrupting their eligibility for public assistance programs. These trusts hold assets for the benefit of your loved one, while placing control in the hands of a trustee you choose.

There are two main types:

• Third-Party Special Needs Trust: Created and funded by someone other than the person with a disability—usually a parent or grandparent. This is the most common type used in estate planning.
• First-Party Special Needs Trust: Funded with the beneficiary's own assets, like a lawsuit settlement or direct inheritance. This trust can still protect benefits, but it typically requires any remaining funds to be paid back to the state Medicaid program after the beneficiary's death.

Both trust types must be carefully drafted to comply with federal and Pennsylvania state laws. When done correctly, they can provide for supplemental needs like transportation, therapy, personal care, or recreational activities—things that improve quality of life without affecting benefit eligibility.

2. PA ABLE Accounts

Another powerful tool is the ABLE (Achieving a Better Life Experience) account. These are tax-advantaged savings accounts for individuals whose disability began before age 26 (increasing to 46 beginning in 2026).

ABLE accounts allow you to save up to $19,000 annually (as of 2025) without interfering with most means-tested benefits. Funds can be used for a wide range of disability-related expenses, including education, housing, and healthcare. ABLE accounts can be a great companion to a Special Needs Trust, offering flexibility and direct access to funds for the beneficiary.

3. Letters of Intent

While not legally binding, a Letter of Intent is an invaluable tool for communicating your wishes about your loved one's care. It can include details about daily routines, medical needs, preferences, favorite activities, and anything else that would help a future caregiver provide consistent, compassionate care. Think of it as a guidebook for your loved one's life.

4. Careful Beneficiary Designations

Even with a great plan in place, it's essential to make sure no one accidentally leaves assets directly to the individual with special needs. A well-meaning grandparent who names the beneficiary directly on an IRA or life insurance policy can unintentionally disrupt public benefits. Instead, assets should be directed to the Special Needs Trust.

Make sure everyone in the family understands the plan and updates their own estate documents and beneficiary forms accordingly.

5. Choosing the Right Fiduciaries

Selecting the right people—or institutions—to serve as trustees, guardians, or agents under a power of attorney is especially important when planning for someone with special needs. These individuals will be responsible for managing money, making decisions, and following your intentions. In some cases, a professional trustee may be a better choice than a family member, especially when complex rules are involved.

6. Keep Your Plan Updated

Your loved one's needs may change over time, and so can the law. It's a good idea to review your estate plan every few years—or sooner if there's a major life event like a diagnosis, a move, or a change in financial circumstances.

Legacy Planning is Here to Help

Planning for an heir with a disability requires more than just a will—it demands thoughtful, strategic tools designed to protect both your assets and your loved one's future. With the right guidance, you can leave a legacy that supports their independence and well-being for years to come.

If you're ready to start planning, or would like to update your current plan, I invite you to schedule a free consultation with my office by using the link below. Let's build a plan that brings peace of mind and lasting security to the people that matter most to you.

https://thelawofficeofscottlynett.cliogrow.com/book/fd5f91f5a23f0a238a1b08d104b030cb