Navigating special needs planning can be a complex journey for people with disabilities and their families and caregivers. As individuals with disabilities reach adulthood, important decisions must be made to ensure their autonomy, well-being, and access to essential services. Some of the legal tools to aid in these protections are discussed below.
Powers of Attorney
An adult with the capacity to sign legal documents may wish to create Powers of Attorney, including:
- A General Power of Attorney, in which the adult (the “principal”) gives another person the authority to access and manage the principal’s money and other assets, income, certain types of government benefits, and other financial affairs.
- A Durable Power of Attorney for Health Care, in which the principal gives another person the authority to make the principal’s healthcare decisions in case the principal becomes unable to do so due to disability or illness.
The principal may change or revoke the Power of Attorney at any time while the principal is legally competent. Powers of Attorney are generally inexpensive to create, and no court involvement is needed.
If the adult does not have the capacity to create Powers of Attorney, it may be necessary to establish a Guardianship, Conservatorship, or both.
Guardianship
A Guardianship is a legal arrangement in which a court appoints a person (a “guardian”) to make decisions about the care of another person, including health care, education, psychiatric care, and living arrangements. Parents who are appointed guardians for their adult child can continue participating in the child’s care after the child turns 18, including:
- Making and attending doctor appointments
- Reviewing medical records
- Choosing specialists and deciding on treatments
Conservatorship
A Conservatorship is a legal arrangement in which a court appoints an individual (a “conservator”) to make decisions about another person’s income, money, property, and other financial matters. Parents who are appointed conservators for their adult child may be able to continue assisting with finances after the child turns 18, including:
- Managing bank accounts
- Buying and selling property
- Making investment decisions
Special-Needs Trusts
A Special-Needs Trust can help people with disabilities maintain eligibility for Medicaid, Supplemental Security Income (“SSI”), and other “means-tested” government benefits that have strict income and asset limits. An outright gift or inheritance could put the beneficiary over the resource limit, resulting in a loss of benefits. Leaving the assets to a Special-Needs Trust instead can shelter the assets, ensuring the beneficiary will benefit from the gift or inheritance without losing eligibility for government benefits.
ABLE Accounts
An ABLE (“Achieving a Better Life Experience”) account is a tax-advantaged savings account that enables people with disabilities to save money for qualified disability-related expenses without losing eligibility for government benefits. To qualify, the beneficiary must have a significant disability that began before age 26 (or, starting in 2026, age 46). Only a certain amount may be contributed to an ABLE account in any given calendar year (in 2025, $19,000). Up to $100,000 can be held in an ABLE account without counting against the beneficiary’s income or asset limit for purposes of Medicaid, SSI, or other means-tested benefits.
Conclusion
Planning for the future of a loved one with a disability involves navigating a complex network of legal tools and financial considerations. Your attorney can advise whether a Power of Attorney, a Guardianship, Conservatorship, Special-Needs Trust, or ABLE account is right for you.
