Bronx Special Needs Planning Attorney
Planning for a loved one with a disability involves more than care—it means ensuring long-term security, independence, and access to essential public benefits. Without proper legal planning, a well-meaning inheritance or financial gift could unintentionally disqualify them from programs like Medicaid or Supplemental Security Income (SSI). At Cavallo & Cavallo, our Bronx special needs planning attorneys help families create thoughtful, effective special needs plans that protect benefits while providing for a secure future.
What Is Special Needs Planning?
Special needs planning refers to the legal and financial strategies used to support an individual with physical, mental, or developmental disabilities—without jeopardizing their eligibility for government assistance.
Key components often include:
- Establishing a Special Needs Trust (SNT)
- Naming the right legal guardians or fiduciaries
- Coordinating public and private resources
- Creating a Letter of Intent to guide future caregivers
- Using estate planning tools to protect long-term support
Each plan is tailored to the individual’s unique needs, abilities, and family circumstances.
Why It’s Important to Plan Ahead
Many public benefits programs—such as Medicaid and SSI—have strict income and asset limits. Without a plan in place, an inheritance or financial support from parents or relatives could cause someone with a disability to lose these vital benefits.
Special needs planning helps:
- Maintain eligibility for Medicaid, SSI, and other programs
- Provide additional financial resources for quality of life
- Avoid court involvement or guardianship proceedings
- Ensure long-term care and housing needs are addressed
- Ease the burden on future caregivers or family members
Planning ahead ensures continuity of care and peace of mind for everyone involved.
Special Needs Trusts (SNTs)
The cornerstone of most special needs plans is the Special Needs Trust (SNT). This legal tool allows assets to be set aside for a disabled individual without affecting their eligibility for means-tested benefits.
There are two main types of SNTs:
First-Party Special Needs Trust (Self-Settled Trust):
- Funded with the disabled person’s own assets (e.g., inheritance, lawsuit settlement)
- Must be created before the beneficiary turns 65
- Any funds remaining at death may be subject to Medicaid payback
Third-Party Special Needs Trust:
- Funded with assets from parents, grandparents, or others
- No age limit or Medicaid payback requirement
- Often used as part of an estate plan to leave an inheritance
These trusts can pay for supplemental needs such as:
- Personal care aides
- Medical equipment not covered by Medicaid
- Education and job training
- Hobbies, travel, and entertainment
- Transportation and home modifications
We help families determine the right type of trust and ensure it is properly structured under New York law.
Pooled Trusts
For some individuals, especially those with limited funds, a pooled trust may be a practical alternative. Managed by nonprofit organizations, these trusts combine resources from many beneficiaries for investment and management purposes—while maintaining separate accounts.
Pooled trusts are useful for:
- Medicaid recipients over age 65
- Small settlements or modest inheritances
- Individuals without a suitable trustee
We help clients evaluate when a pooled trust is the best fit and assist with enrollment and compliance.
Naming Guardians and Decision-Makers
Legal planning for a loved one with special needs may also include naming individuals to make personal, medical, and financial decisions if the individual cannot do so independently.
Options may include:
- Article 17-A Guardianship: A court-appointed guardian for individuals with developmental disabilities
- Article 81 Guardianship: For adults who need assistance due to mental or physical incapacity
- Health Care Proxy and Power of Attorney: For individuals who have the capacity to appoint someone they trust
We assist families in understanding and choosing the appropriate legal protections, ensuring that trusted individuals are authorized to act.
Government Benefits and Special Needs Planning
Many critical services for people with disabilities are provided through government programs. Special needs planning must coordinate with these programs to maintain eligibility.
Key benefits include:
- Medicaid: Covers healthcare, long-term care, and support services
- Supplemental Security Income (SSI): Provides income to disabled individuals with limited resources
- Supplemental Nutrition Assistance Program (SNAP)
- Housing assistance and transportation programs
By using a properly drafted SNT, funds can be used to improve the individual’s quality of life without reducing or losing these important benefits.
Letters of Intent and Family Planning
A Letter of Intent is a non-binding document that provides future caregivers with essential information about your loved one’s routines, preferences, medical history, education, and care needs.
It often includes:
- Medical providers and medication lists
- Behavioral triggers and calming strategies
- Educational history and goals
- Daily routines and activities
- Wishes for housing, employment, or relationships
Though not legally binding, this letter serves as a valuable guide and can help ease transitions and ensure continuity of care.
Frequently Asked Questions About Special Needs Planning
What happens if I leave money directly to my disabled child?
They could lose eligibility for SSI or Medicaid. Even a small inheritance may push them over resource limits. A Special Needs Trust avoids this problem.
Can I fund a special needs trust with life insurance?
Yes. Many families name a special needs trust as the beneficiary of a life insurance policy to provide long-term support.
Is there a limit to how much I can place in a special needs trust?
No. There is no cap on how much can be placed in a third-party SNT. However, large amounts may require more detailed planning and trustee oversight.
Who should serve as trustee of a special needs trust?
You can name a trusted family member, professional trustee, or even a combination of both. The trustee should understand Medicaid rules and fiduciary responsibilities.
Does a special needs trust affect my other children’s inheritance?
Not necessarily. You can allocate your estate among children in a way that reflects both needs and fairness—using trusts and other tools to ensure balance.
Can I change the terms of the trust later?
Third-party special needs trusts can be designed with flexibility and updated if needed. First-party trusts have more limitations due to Medicaid rules.
Serving Throughout The Bronx
- Riverdale
- Spuyten Duyvil
- Pelham Bay
- Morris Park
- Throggs Neck
- Kingsbridge
- Woodlawn
- Parkchester
- Bedford Park
- Fordham
How Cavallo & Cavallo Can Help
At Cavallo & Cavallo, we’ve been serving Bronx families for over 30 years. We understand the complexities of special needs planning and are committed to helping parents, guardians, and caregivers create comprehensive plans that protect their loved ones—today and in the future.
Our special needs planning services include:
- Drafting and funding special needs trusts
- Creating letters of intent and care plans
- Advising on guardianship, powers of attorney, and proxies
- Coordinating with benefits programs and care providers
- Helping integrate special needs planning into your overall estate plan
We take a compassionate, personalized approach to ensure your family’s unique needs are met with care and precision.
Speak With a Bronx Special Needs Planning Attorney Today
If you have a loved one with a disability, the right planning can make all the difference in their security and quality of life. Contact Cavallo & Cavallo today to speak with an experienced Bronx special needs planning attorney and start building a future that protects, empowers, and honors your family’s goals.
