What is a third-party special needs trust?

A third-party special needs trust is a legal structure funded by parents, either during their lifetime or through a will. Its primary purpose is to supplement a child's quality of life without replacing public benefits. A key advantage of this specific trust in Pennsylvania is that it does not require a Medicaid payback after the child passes away. Learn more about Pennsylvania special needs trusts.

What happens to legal decision-making when my child turns 18?

In Pennsylvania, parents lose their default legal decision-making authority once a child reaches age 18. To prepare for this transition, families should evaluate whether to seek a formal guardianship or conservatorship. Other options include supported decision-making or tailored legal alternatives designed to respect the individual's needs while ensuring they have the necessary support for major life decisions. Learn more about Pennsylvania special needs trusts.

How does a PA ABLE account help with disability expenses?

A PA ABLE account allows for tax-free savings intended to cover disability-related expenses. The funds in this account can grow without affecting the child's eligibility for Supplemental Security Income (SSI) or Medicaid, provided the balance stays within specific limits. It serves as a flexible tool for managing costs while preserving access to essential government programs. Learn more about Pennsylvania special needs trusts.

What is a letter of intent in estate planning?

A letter of intent is a non-legal companion document that provides vital information for future caregivers. It outlines a child's daily routines, medical providers, and personal preferences. While it is not a formal legal contract, it serves as an invaluable guide to ensure that the child's care remains consistent and aligned with their specific needs after the parents are gone. Learn more about Pennsylvania special needs trusts.

Estate Planning for a Special Needs Child in PA

By Sean Quinlan, Esq. · Updated January 15, 2025

Estate planning for a Pennsylvania child with disabilities requires layering legal structures so an inheritance enhances life without disqualifying benefits.

Third-party SNT

A trust the parents fund (now or by bequest) that supplements but does not replace public benefits. No Medicaid payback at the child's death.

Letter of intent

A non-legal companion document describing daily preferences, providers, routines — invaluable to future caregivers.

Guardianship and conservatorship

Pennsylvania parents lose default decision-making at age 18. Plan whether to seek guardianship, supported decision-making, or a tailored alternative.

ABLE accounts

PA ABLE allows tax-free savings up to a limit for disability expenses without affecting SSI/Medicaid.

Frequently asked

Common questions

Disclaimer

This article is general information about Pennsylvania law as of the update date above. It is not legal advice for your situation and does not create an attorney-client relationship. For advice on your specific facts, please schedule a consultation.

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