March marks Developmental Disabilities Awareness Month, a time to promote inclusion and raise awareness about the challenges individuals with developmental disabilities face. It is also an opportunity to focus on their future, especially through estate planning. If you have a loved one with special needs, updating your estate plan can help secure their well-being while ensuring they retain eligibility for essential government benefits. In recognition of Developmental Disabilities Awareness Month, the Long Island attorneys at Eghrari Wealth Training Firm encourage you to review and revise your special needs plan.
What Is Developmental Disabilities Awareness Month?
The National Association of Councils on Developmental Disabilities (NACDD) describes this month as a time to advocate for full inclusion and address ongoing barriers. If you have a child, grandchild, or family member with disabilities, this is an ideal time to ensure your estate plan meets their current and future needs. Take this opportunity to educate yourself about special needs planning, attend awareness events, and support policies that benefit individuals with disabilities. If you have not yet created a plan, now is the time to do so. If you already have one, reviewing it ensures it remains relevant.
The Importance of Special Needs Planning
Special needs planning provides financial security and legal protection for individuals with disabilities. It often involves setting up a Special Needs Trust (SNT), appointing a guardian if necessary, and drafting a Letter of Intent. Careful planning allows you to supplement a loved one’s financial needs while preserving access to Supplemental Security Income (SSI), Medicaid, and other vital programs.
The Role of a Special Needs Trust
A Special Needs Trust (SNT) safeguards assets for a person with disabilities without jeopardizing government assistance. These funds cover supplemental expenses such as education, transportation, and recreation. There are two primary types:
- First-Party Special Needs Trusts: Funded with the individual’s own assets (e.g., lawsuit settlements or inheritances) and must include a Medicaid payback provision.
- Third-Party Special Needs Trusts: Created and funded by someone else, such as a parent or grandparent, and does not require Medicaid reimbursement.
Guardianship and Decision-Making Support
Some individuals with disabilities need help managing financial, medical, or personal affairs. Guardianship grants another person legal authority to make decisions on their behalf. However, alternatives such as powers of attorney or supported decision-making agreements may provide more flexibility while preserving autonomy.
Tax Considerations in Special Needs Planning
Proper planning also involves tax strategies. Contributions to an SNT may be subject to gift tax rules, and certain trusts require specific tax filings. Additionally, ABLE accounts allow tax-free savings for disability-related expenses while protecting government benefit eligibility. Consulting an estate planning attorney or financial advisor ensures compliance with tax laws while maximizing financial security.
Take Action This Month
Developmental Disabilities Awareness Month is the perfect time to assess your special needs plan. Whether you are creating one for the first time or updating an existing plan, taking action now helps protect your loved one’s future. Contact an experienced estate planning attorney to ensure your plan aligns with their needs and preserves access to critical benefits.
Can We Help You Review Your Special Needs Plan for Developmental Disabilities Awareness Month?
For more information, please join us for an upcoming FREE seminar. If you would like to review your estate plan during Developmental Disabilities Awareness Month, contact the Long Island estate planning attorneys at Eghrari Wealth Training Firm by calling us at 631-265-0599 to schedule your appointment.
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