Autism Awareness Month: Planning with Care for Families

Autism Awareness Month is a meaningful time to recognize the dedication, resilience, and care that families bring to supporting loved ones with special needs. For many families, planning for the future goes beyond finances. It’s even more about protecting our loved ones, providing for their stability, and doing everything we can to provide independence, and defend their dignity for the remainder of their lives.

 

At Lemmon & Hale, that perspective is deeply understood. With strong local roots, our firm helps families navigate decisions that can feel both emotional and complex with clarity and care.

 

What Is a Special Needs Trust?

 

A special needs trust is a legal tool designed to hold and manage assets for a person with disabilities without jeopardizing eligibility for needs-based benefits like Supplemental Security Income (SSI) or Medicaid.

 

In simple terms, the trust allows funds to be used for “supplemental needs” that improve quality of life, such as education, transportation, or personal care, while helping maintain eligibility for essential government benefits. Properly set up special needs trusts may not be counted like other assets under Social Security rules, which can help protect eligibility for benefits.

 

Families often consider creating a special needs trust for a loved one who is disabled or has special needs when:

• Planning to leave them an inheritance.
• Managing their funds from a legal settlement.
• Preparing for their long-term care and financial support.

Without the right structure, even well-intentioned financial gifts can unintentionally affect your loved one's SSI or Medicaid eligibility.

 

Key Benefits and Virginia-Specific Considerations

 

One of the primary advantages of a properly drafted special needs trust is that it can supplement, not replace, public benefits. This creates a layer of financial support while maintaining access to programs that cover essential healthcare and living needs.

 

Because trust laws are governed at the state level, Virginia-specific drafting matters. Virginia’s trust laws, including Title 64.2 provisions such as § 64.2-779.10 and related sections, can affect how special-needs planning documents are structured and administered.

 

Thoughtful, individualized drafting helps and can be crucial to:

• Reduce the risk of disrupting SSI or Medicaid eligibility.
• Help ensure distributions are handled consistently with benefit rules and the trust’s terms.
• Reflect the beneficiary’s unique needs and the family’s long-term goals.

Even small drafting errors or overly broad distribution terms can create avoidable SSI or Medicaid complications, which is why experienced legal guidance is especially important.

 

Special Needs Trusts and ABLE Accounts: How They Work Together

 

Special needs trusts are often part of a broader planning strategy that may also include an ABLE account. ABLE accounts, established under Internal Revenue Code, Section 529A, are tax-advantaged savings accounts for eligible individuals with disabilities, and distributions to the accounts are tax-free to the extent they are used for qualified disability expenses.

 

While both tools support financial stability, they serve different purposes.

 

An ABLE account is often helpful for:

• Transportation, education, and other disability-related expenses.
• Smaller, more frequent purchases.
• Supporting a level of financial independence.

Qualified disability expenses can include a broad range of costs, such as education, housing, transportation, employment training, assistive technology, and health-related needs.

 

A special needs trust is typically better suited for:

• Larger assets, such as inheritances or settlements.
• Long-term financial planning.
• Managed distributions through a trustee.

For example, a family may use a special needs trust to hold long-term assets while transferring smaller amounts into an ABLE account for everyday expenses. When coordinated carefully, these tools can work together to support quality of life while helping maintain eligibility for public benefits.

 

How Lemmon & Hale Helps

 

Special needs planning is rarely one-size-fits-all. Each family’s situation is shaped by personal goals, available resources, and the specific needs of their loved one.

 

Lemmon & Hale provides guidance tailored to each family’s circumstances, helping clients understand their options and make informed decisions about long-term planning. Our firm focuses on clear, practical guidance to help families navigate important legal and financial considerations.

 

Take the Next Step with Confidence

 

Planning ahead can make a meaningful difference in protecting both benefits and quality of life for a loved one with special needs. Whether you are considering a special needs trust, exploring how ABLE accounts fit into your plan, or preparing for a future inheritance, thoughtful legal guidance can help you avoid costly missteps.

 

If your family is ready to begin or revisit your plan, contact us for your free 30-minute consultation.  Lemmon & Hale offers compassionate consultations designed to provide clarity and peace of mind.