Families caring for a loved one with special needs often face unique challenges—balancing today’s needs with tomorrow’s uncertainties. One of the most effective tools to help provide long-term security and peace of mind is a Special Needs Trust (SNT).
At The Mundheim Firm, we guide Texas families through setting up Special Needs Trusts that protect assets, preserve benefits, and ensure your loved one’s well-being for years to come. Here are five key reasons why you might consider adding an SNT to your estate plan.
1. Protecting Eligibility for Government Benefits
Government programs like Medicaid and Supplemental Security Income (SSI) have strict asset limits. Without careful planning, an inheritance or financial gift can unintentionally disqualify a person with disabilities from these critical benefits.
A Special Needs Trust holds assets separately, so they’re not counted against these limits. This means your loved one can keep receiving essential medical care, housing support, and other services provided by government programs—while still having additional resources to improve quality of life.
2. Enhancing Quality of Life Beyond Basic Support
Public benefits are often limited to covering necessities: food, shelter, and medical care. A Special Needs Trust goes further, allowing funds to be used for:
- Education, job training, and tutoring
- Special therapies or medical equipment not covered by insurance
- Hobbies, recreational activities, and vacations
- Personal care items or transportation assistance
These “extras” help your loved one live with dignity, fulfillment, and joy—far beyond what basic benefits can provide.
3. Providing Long-Term Financial Security
An SNT isn’t just for immediate needs; it’s a structured way to ensure financial resources are available for your loved one throughout their lifetime. Funds can come from various sources—such as family gifts, life insurance proceeds, or settlements—and are managed by a trustee you choose.
This creates a reliable safety net that adapts as your loved one’s needs evolve, giving both you and them greater financial security.
4. Preventing Family Conflict and Mismanagement
Even with the best intentions, directly leaving money to a sibling or relative to “hold” for a person with special needs can cause tension, mistakes, or even legal problems. An SNT provides clarity by outlining exactly how funds should be used, reducing misunderstandings and disputes.
Appointing a trusted family member, professional trustee, or combination of both ensures that funds are handled responsibly and in your loved one’s best interests. Attorney Marla Mundheim can help families determine who is the best individual to serve this role by offering guidance based on her vast experience.
5. Planning for the Future When You’re No Longer Here
One of the hardest questions parents and caregivers ask themselves is: “Who will take care of my child when I can’t?” A Special Needs Trust answers part of that question by making sure there’s a plan—and the necessary resources—in place.
It complements other estate planning tools to create a holistic approach, so you know your loved one will be supported and protected long after you’re gone.
Plan Today to Protect Your Loved One’s Tomorrow
A Special Needs Trust is more than a financial tool—it’s a way to protect your loved one’s dignity, security, and quality of life. The sooner you start planning; the more options you’ll have to safeguard benefits and family harmony.
If you’d like to learn how a Special Needs Trust could fit into your family’s plan, contact The Mundheim Firm today at 817-479-0076 or through our online contact form. We’re here to help you build a future where your loved one can thrive.