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If you’re raising a child with disabilities, you’ve probably thought about their future more than once. What happens when you’re no longer around to provide care or support? Will your child have the resources they need to live comfortably? These questions are hard, but the answers start with a solid estate plan.
At Kallio Law Firm, LLC, we help Louisiana families take steps that protect both their loved ones and their public benefits. With the right tools in place, you can give your child a more secure future without putting their current support at risk.
Why Standard Planning Doesn’t Always Fit
Most people think of a will or simple trust when it comes to estate planning. But when you’re planning for a child with disabilities, the usual approaches may not work. In fact, leaving your child a lump sum inheritance—even with the best intentions—could cause more harm than good. It might disqualify them from programs like Supplemental Security Income (SSI) or Medicaid, which have strict income and asset limits.
That’s why it’s so important to use tools designed specifically to protect both their long-term care and public benefit eligibility. With the right planning, you can provide meaningful support without putting those critical benefits at risk.
Using a Louisiana Special Needs Trust
One of the most effective ways to protect your child’s future is through a Special Needs Trust (SNT). This type of trust allows you to set aside money for your child without affecting their eligibility for government programs. The funds can be used for expenses that improve their quality of life, such as:
- Therapies and medical treatments
- Home modifications or assistive technology
- Education or training
- Transportation or entertainment
There are two main types of SNTs:
- First-Party SNT: Funded with the child’s own assets, such as a legal settlement. When the child passes away, the state may require repayment for Medicaid benefits.
- Third-Party SNT: Funded by parents, grandparents, or others. These are often set up through a will or trust. There’s no Medicaid payback requirement when properly drafted.
In both cases, the trust is managed by a trustee, not the child. This helps ensure that the money is used wisely and in a way that doesn’t interfere with public benefits.
Why an ABLE Account Might Also Help
Another helpful tool is the ABLE Account, which stands for “Achieving a Better Life Experience.” Louisiana participates in this national savings program, and it can be a great complement to an SNT.
An ABLE account allows a person with a disability to save money for qualified expenses without jeopardizing SSI or Medicaid benefits, up to certain limits. Some of the allowed uses include:
- Housing and rent
- Education and job training
- Transportation
- Health and wellness costs
Unlike a trust, the person with the disability can manage their own ABLE account if they’re able. A parent or legal guardian can also be named as the account manager. Because these accounts are tax-advantaged, the money inside can grow over time.
Interdiction and Powers of Attorney: Planning for Decision-Making
When your child turns 18, they’re legally considered an adult even if they still depend on you for care. That’s why it’s important to plan for how decisions will be made.
Depending on your child’s capacity, options in Louisiana include:
- Full interdiction, where a court appoints someone (called a curator) to make all legal, medical, and financial decisions
- Limited interdiction, which allows more independence while still offering protection
- Medical or Financial Mandate, if your child has the ability to understand and grant legal authority
These tools can help you stay involved in your child’s life without running into legal barriers.
Coordinating With Public Benefits and Long-Term Goals
Any estate plan for a child with disabilities should work hand in hand with public benefits. In Louisiana, programs like SSI, Medicaid, the NOW waiver, and Long-Term Personal Care Services (LT-PCS) provide critical support. But they also come with strict rules about income and assets.
We help families create plans that preserve these benefits while making room for personal needs, goals, and comfort. A well-prepared plan can make the difference between merely surviving and truly thriving.
Giving Your Child the Support They Deserve
Planning for a child with disabilities is about creating a support system that will last. At Kallio Law Firm, LLC, we work with Louisiana families to craft plans that meet legal requirements and real-life needs. If you’re ready to take the next step, we’re here to guide you. Contact us today to talk about how we can help protect your child’s future.
