---
title: Legal & Financial Planning — Special Needs Trusts
scope: TODO_SCOPE
covers:
- trust
- snt
- estate
not_covered: []
sources:
- 20221120_Ivailo_Grigorov_Financial_Planning
- 20230219_Casey_Connealy_Estate_Planning
- 20250921_Assured_Trust_Legal_Tools
- 20260719_Tyler_Davidson_Financial_Picture
last_updated: '2026-07-19'
token_estimate: 1133
parent: https://fwmparents.org/resources/legal-financial-planning/index.md
---

# Legal & Financial Planning — Special Needs Trusts

- Ivailo Grigorov covered SSI & SSDI, Medicaid & Waivers, ABLE accounts, special needs trusts, and other important considerations to help family members better understand how planning for a child with special needs is different both legally & financially. — *[Ivailo Grigorov, Nov 2022](https://fwmparents.org/sessions/20221120_Ivailo_Grigorov_Financial_Planning/notes.md)*

- My biggest takeaway was that probate takes 9 months and will cost 1% of your assets. My son's ABA therapy cannot be delayed by a year without setting him back significantly. Also ABA is expensive, so I don't want to put that burden on a family member while they wait for probate. Setting up a special needs trust was a no brainer for my family. We went with Casey's firm. It was a quick process and it only required a couple hours of our time. I would do it again. — *[Casey Connealy, Feb 2023](https://fwmparents.org/sessions/20230219_Casey_Connealy_Estate_Planning/notes.md)*

- Separate legal entity funded upon your death per your revocable trust — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- Samantha recommends **"stand alone" trust** bearing the individual's name (easier to administer vs sub-trust) — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- Wills trigger probate (6-18 months, costly) — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- **Types:** — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*
    - **Third-Party SNT:** Established by parents/relatives; avoids Medicaid payback; parents control remainder beneficiaries
    - **First-Party SNT:** Funded with beneficiary's own assets (settlements, GoFundMe); subject to Medicaid payback at death

- Funding: Life insurance, real estate, farmland, retirement accounts, inheritances — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- Kansas follows federal estate thresholds (~$30M for couples); Illinois has ~$1M threshold — plan carefully with multi-state assets — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- Medicare 5-year "lookback" — BUT **contributions to a special needs trust are NOT included!** — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- **ALL family members (including grandparents) must structure inheritances through SNT to prevent SSI disqualification** — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- **The 3 types:** first-party (individual's own assets, e.g. settlements; Medicaid payback at death), third-party (family assets; no payback; unlimited trusts allowed, but most families set up one and share its title with relatives), and pooled — nonprofit-run (e.g. [Arcare](https://arcare.org/)), little/no setup cost, good fit for estates under ~$100K; first-party pooled trusts typically retain ~20% at death, while Arcare retains nothing on third-party pooled trusts — *[Tyler Davidson, Jul 2026](https://fwmparents.org/sessions/20260719_Tyler_Davidson_Financial_Picture/notes.md)*

- For a disability with onset at **age 46 or later** (e.g., an adult traumatic brain injury), an ABLE account isn't available — a first-party SNT is the vehicle — *[Tyler Davidson, Jul 2026](https://fwmparents.org/sessions/20260719_Tyler_Davidson_Financial_Picture/notes.md)*

- A revocable trust can direct a specific child's share into the SNT so it doesn't jeopardize benefits, while the other children inherit normally — *[Tyler Davidson, Jul 2026](https://fwmparents.org/sessions/20260719_Tyler_Davidson_Financial_Picture/notes.md)*

- Ballpark attorney costs: will + powers of attorney ~$1,000; revocable trusts ~$3,000–$5,000; special needs trusts ~$5,000–$10,000 — *[Tyler Davidson, Jul 2026](https://fwmparents.org/sessions/20260719_Tyler_Davidson_Financial_Picture/notes.md)*

---

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