What is NH Special Needs Planning?
Special needs planning refers to the legal strategies used for any person or family member with a disability. Disabilities may be diagnosed at birth or adulthood and may be caused by illness or injury. Special needs planning in NH can start at any point in life; however, the earlier you plan, the better.
At Uniquely You Estate Planning, our special needs legal strategies include the following:
- Establishing a special needs trust
- Appointing guardianship
- Creating a letter of intent
Special Needs Trusts (SNT)
A special needs trust is designed to protect the assets of a loved one who receives benefits due to a mental or physical disability or payments arising from a personal injury settlement. It ensures trust assets are not countable resources of the person with the disability when determining eligibility for government programs.
It’s crucial to properly fund a special needs trust (SNT), designating your trust as the owner of certain assets. The trustee can then distribute these assets to benefit your disabled loved one.
First-Party Special Needs Trusts — Money from a personal injury settlement or inheritance received directly by the beneficiary can fund first-party trusts for those under 65 years old. However, upon the death of the disabled individual, these trusts have payback provisions for Medicaid.
Third-Party Special Needs Trusts — Family members or friends can contribute to this trust using inheritances, family savings, and other financial gifts, with no payback provisions for Medicaid.
To provide for a loved one with special needs, the trust must be carefully set up to comply with federal and New Hampshire state rules. At Uniquely You Estate Planning, we ensure that your trust is successful in meeting its goals.
New Hampshire Guardianship and Conservatorship
A guardian is someone who agrees to take on the responsibility of personal and medical decisions. A conservator has the authority to pay bills and handle other financial matters. Guardianship or conservatorship may be necessary after a child with special needs turns eighteen if they are not able to make their own legal and medical decisions.
It’s vital to set up guardianship in your estate plan in case both parents are unable to care for the child or adult with special needs. An adult sibling, close family member, friend, public agency, or not-for-profit may become guardian.
Letter of Intent
This letter is an informal but very detailed account of your loved one’s medical, educational, social, and behavioral requirements. A letter of intent gives future caregivers or guardians an inside look at the person with special needs that they can only get from a parent or close family member.
The letter can include family history, an overview of the disability, medical history, and instructions for ongoing needs. Often children and adults with special needs value routine and struggle with change. It’s important to include daily schedules and habits that are important, such as foods they like, preferred living arrangements, or behavior management techniques. You should also outline the benefits received by loved one and how to maintain them.
An Experienced Special Needs Attorney in NH
Planning for the care of an adult child with special needs can be complicated. Dawn DiManna, Esq. at Uniquely You, has over 15 years of experience helping clients in New Hampshire understand estate planning, elder law, asset protection, long-term care, proactive and crisis Medicaid planning, and Veterans planning.
Contact us at 603-770-9135 with questions about special needs planning.
The Special Needs Trust in a Nutshell
Families wanting to ensure their loved one with special needs has the resources to thrive…
Understanding Conservatorship or Guardianship for Adults With Disabilities
Guardianships and conservatorships are legal arrangements for adults with developmental disabilities who are incapable of…
Adult Children with Disabilities: Creating a Support System
Parents planning for their adult children's future well-being as their disabilities change is a responsive,…
Special needs planning involves creating legal strategies to help protect and provide for individuals with disabilities while addressing their future care, financial security, and access to important benefits. A comprehensive plan may include special needs trusts, guardianship planning, and other legal documents designed to support the individual’s unique circumstances.
A special needs trust is a legal tool designed to provide financial support for a person with a disability while helping protect eligibility for certain government benefits, such as Medicaid and Supplemental Security Income (SSI). These trusts allow assets to be used for additional care, services, and quality-of-life expenses without necessarily affecting benefit eligibility when properly structured.
A first-party special needs trust is funded with assets belonging to the individual with a disability, such as an inheritance, settlement, or personal funds. A third-party special needs trust is funded by someone else, such as a parent, family member, or loved one, who wants to provide financial support without impacting eligibility for certain benefits.
When a child with special needs turns 18, parents may no longer automatically have legal authority to make decisions on their behalf. Guardianship or conservatorship may be appropriate if the individual needs assistance with personal, medical, or financial decisions.
A special needs planning attorney can help families create a plan that addresses trusts, guardianship, asset protection, and future care needs. Proper planning can help protect a loved one’s financial future, preserve access to benefits, and ensure important decisions can be made by trusted individuals.
Starting a special needs plan early can give families more options for protecting assets, preparing for future care needs, and ensuring their loved one continues to receive appropriate support. Planning ahead can help provide greater stability and peace of mind for both individuals with disabilities and their families.
