Special Needs Planning Attorney

A Special Needs Planning Lawyer helps families create legal strategies to provide for a loved one with a disability without jeopardizing their eligibility for essential government benefits. At Copper State Planning, we draft specialized trusts and estate documents that ensure your loved one serves as a beneficiary of your assets while maintaining their access to Supplemental Security Income (SSI) and Medicaid (AHCCCS in Arizona).

The primary benefit of special needs planning is ensuring your loved one has a safety net of private funds to improve their quality of life without being disqualified from state aid. Without a proper plan, a direct inheritance could accidentally kick a beneficiary off the medical and financial assistance they rely on for daily survival.

A First-Party Special Needs Trust is funded with the beneficiary’s own assets, such as a legal settlement or an inheritance they received directly; these often require a “payback” provision to the state for Medicaid costs upon the beneficiary’s death and generally must be established before the beneficiary turns 65.. A Third-Party Special Needs Trust is funded by assets from others (like parents or grandparents) and typically does not require a payback to the government, allowing remaining funds to pass to other family members.

Government programs like SSI and Medicaid have strict asset limits (often as low as $2,000). A Special Needs Trust (SNT) holds assets legally owned by the trust, not the individual. This legal structure allows the funds to be used for the beneficiary’s “supplemental” needs—like therapy, electronics, or travel—without those assets counting against their eligibility caps.

Leaving money directly to a an individual with special needs through a standard Will can be disastrous. It places the assets directly in their name, which will likely disqualify them from government benefits immediately until that money is “spent down.” A comprehensive plan directs those assets into a Special Needs Trust instead.

A robust plan typically includes a Special Needs Trust, a Last Will and Testament, Durable Powers of Attorney (for financial and medical decisions), and a Letter of Intent. Depending on the level of the individual’s capacity, Guardianship or Conservatorship documents may also be necessary under Arizona law.

While not a legally binding document, a Letter of Intent is practically vital. It is a detailed guide written by parents or guardians describing the beneficiary’s daily routine, medical history, preferences, favorite foods, doctors, and aspirations. It serves as an instruction manual for future caregivers to ensure continuity of care.

You should hire an attorney as soon as you have a diagnosis or when the individual with special needs turns 18. However, it is never too late to plan. Engaging a Phoenix-based attorney early helps avoid crisis planning and ensures that legal guardianship or powers of attorney are in place before parents are no longer able to provide care.

Trust funds can generally be used for expenses that government benefits do not cover. This includes “quality of life” purchases such as education, entertainment, transportation, specialized medical or dental treatment not covered by insurance, and vacations. Funds must be managed carefully to avoid paying for food or shelter in a way that reduces SSI payments.

Yes. Medicaid programs (like Arizona’s AHCCCS) and guardianship laws are state-specific. A local attorney at Copper State Planning understands the specific procedural requirements of Arizona courts and the local nuances of benefits administration that an out-of-state generalist might miss.

The process involves three main steps: 1) Consulting with an attorney to select the right type of trust (First vs. Third Party) and appointing a Trustee; 2) Drafting and signing the legal trust documents; and 3) “Funding” the trust by retitling assets or designating the trust as a beneficiary of life insurance policies or retirement accounts.

An ABLE account is a tax-advantaged savings account for individuals with disabilities that allows them to save money without losing benefit eligibility. It works excellently alongside a Special Needs Trust, giving the beneficiary more autonomy over smaller sums of money for daily expenses while the Trust holds larger long-term assets. (Note: While currently restricted to those disabled before age 26, eligibility expands to age 46 starting in 2026).

A Trustee manages the assets and makes distributions. You can choose a reliable family member, a professional fiduciary, or a corporate trustee. The most important factor is that the Trustee understands the strict rules regarding government benefits; making an improper distribution can accidentally disqualify the beneficiary from aid.

It often does. When a child with special needs turns 18, they legally become an adult, and parents lose the legal authority to make medical or financial decisions for them. If the individual is unable to manage their own affairs, you may need to petition the Arizona courts for Guardianship or Conservatorship.

Start by gathering a list of your assets and thinking about your goals for your loved one’s future. Then, contact us to schedule a consultation. We will review your specific situation, explain your options under Arizona law, and draft a customized checklist to secure your family’s future.