Planning for the Future with a Special Needs Trust

Autism Awareness Month is about celebrating diversity, education, and, of course, action. Families, caregivers, and advocates use this time to push for better resources, support inclusion, and secure the future for individuals on the autism spectrum. While education and advocacy play a major role, so do financial and legal planning. One of the most effective tools for ensuring long-term security and quality of life is a special needs trust (SNT).

What is a Special Needs Trust?

A special needs trust is a legal tool that allows families to set aside money for a loved one with a disability. It’s an estate planning option that doesn’t affect their eligibility for government benefits like Supplemental Security Income (SSI) or Medicaid. Unlike direct financial gifts or inheritances, which could disqualify someone from these crucial programs, an SNT protects access to benefits while providing additional financial support for things like therapy, education, and daily living expenses.

The trust is managed by a trustee, who ensures that funds are used appropriately and in the best interest of the beneficiary. 

Why a Special Needs Trust Matters for Individuals with Autism

Government assistance programs have strict asset limits regardless of diagnosis. If a person with autism receives a large sum of money (whether from an inheritance, a legal settlement, or a well-meaning family member), they might lose eligibility for benefits that cover housing, medical care, and daily expenses. A special needs trust keeps assets separate, allowing beneficiaries to maintain access to these critical services.

Funding Beyond Basic Needs

Government programs cover necessities, but they don’t cover everything that makes life fulfilling. An SNT can pay for:

• Therapy (occupational, speech, behavioral)
• Assistive technology
• Job coaching or vocational training
• Educational programs
• Travel and recreation
• Personal care services

Rather than just getting by, individuals with autism can access the resources that help them thrive.

Long-Term Financial Security

Parents and caregivers often ask, What happens when I’m gone? An SNT answers that question by ensuring funds are managed and distributed properly long after family members are no longer able to provide direct care. Without a trust in place, assets could be mismanaged, or worse, lost due to poor planning.

Choosing the Right Type of Trust

There are three primary types of special needs trusts:

• First-Party SNT – Funded with assets that belong to the individual with a disability, such as a legal settlement or an inheritance. Any remaining funds must be used to reimburse Medicaid after the beneficiary’s passing.
• Third-Party SNT – Created and funded by parents, relatives, or others as part of estate planning. These funds are not subject to Medicaid payback rules.
• Pooled SNT – Managed by a nonprofit, where multiple beneficiaries’ assets are combined for investment purposes but tracked separately.

Each option has benefits depending on the family’s financial situation and long-term goals.

Selecting a Trustee

The trustee has a significant role: managing funds, making distributions, and ensuring the trust complies with legal and financial rules. This can be a family member, a trusted friend, a professional trustee, or a nonprofit organization that specializes in managing special needs trusts. It’s important to choose someone who understands the beneficiary’s needs and has the ability to handle financial and legal responsibilities.

Protecting the Future

A special needs trust ensures that individuals with autism have access to the resources they need, without putting their benefits at risk. Whether the goal is securing long-term housing, funding education, or enhancing daily life, an SNT provides structure, stability, and security.



If you're considering setting up a special needs trust for a loved one, McGrath Law Office, P.C. can guide you through the process. Call our Mackinaw office at 309-359-3461 or our Morton office at 309-266-6211 to discuss how to protect your family’s future.