Special Needs Planning for Loved Ones with Disabilities

Protecting benefits and quality of life through Special Needs Trusts, Pascaris Law Firm helps Michigan families provide for loved ones with disabilities—without risking essential support.

Black circle on white background.
Black circle on a white background.

Why Special Needs Planning is Crucial

Families with children or adults who have disabilities face unique challenges. Many government benefits—like SSI and Medicaid—are only available to those with limited assets. If a loved one inherits money directly or receives an outright gift, they could lose access to vital assistance. Special needs planning ensures your family member enjoys additional support while maintaining eligibility, bringing peace of mind for you and a secure future for them.

Special Needs Trusts (SNTs)

A Special Needs Trust is a legal arrangement that holds and manages funds for someone with disabilities. These trusts are designed to supplement—never replace—government benefits. There are two main types:

  • Third-party SNTs: Funded by parents, grandparents, or others for a loved one’s benefit.
  • First-party SNTs: Created with the disabled individual’s own assets, often from an inheritance or settlement.
    Properly drafted SNTs in Michigan are not counted for means-tested benefits, thanks to state and federal laws. The trust’s assets are managed by a trustee and used for supplemental needs like education, therapy, or recreation.

Our Special Needs Planning Services

We draft Special Needs Trusts tailored to your family’s situation, ensuring compliance with Michigan and federal law. Our team advises on choosing a responsible trustee—whether a family member, trusted friend, or professional—and coordinates life insurance and beneficiary designations so assets flow properly into the trust. If an ABLE account could help, we’ll explain the pros, cons, and how these tools can work together. Every plan is thorough, thoughtful, and focused on your loved one’s security and dignity.

Special Needs Planning in Michigan

Michigan recognizes and supports Special Needs Trusts for residents with disabilities. Pascaris Law Firm stays up to date with Michigan Department of Health and Human Services rules, Wayne and Oakland County court practices, and all local requirements. Our experience with Michigan families means we anticipate common issues and provide clear, practical guidance—so your plan works as intended when it matters most.

Beyond Trusts – Holistic Planning

We know that planning for a loved one with disabilities is about more than just documents. Pascaris Law Firm can help with letters of intent (sharing your wishes for care), guardianship or conservatorship as your child turns 18, and connecting you with financial professionals who understand special needs situations. Our goal is to offer families a well-rounded, future-focused plan—so you’re never facing these decisions alone.

Questions We Hear Most Often

  • What can a Special Needs Trust pay for?

    SNT funds may cover education, therapies, caregiver expenses, recreation, technology, and more—anything that improves quality of life without jeopardizing benefit eligibility. We guide families and trustees on what’s allowed.

  • Who should be trustee of a Special Needs Trust?

    Trustees can be parents, siblings, trusted friends, or professionals. Because the rules are complex, we help you weigh the options and may recommend a co-trustee or corporate trustee for added protection.

  • Can I use an SNT for my elderly parent or is it just for young people?

    Special Needs Trusts are useful for anyone, at any age, who receives means-tested benefits. They’re often used for children but can also protect inheritances for adults with disabilities or aging parents on Medicaid.

  • What is the difference between a Special Needs Trust and an ABLE account?

    An ABLE account is a tax-advantaged savings tool with annual contribution and balance limits—ideal for moderate expenses. An SNT can hold larger amounts, is not capped the same way, and is better for inheritances. Many families use both together for flexibility.

  • When should I set up a special needs trust?

    The best time is now—if you have a child or loved one with disabilities, a Special Needs Trust should be part of your estate plan. It can also be named as the beneficiary on life insurance or retirement accounts.