Q + A: My grandson has special needs, and I'm being told that I should NOT include him in my estate.

Reader Question:

"My grandson has special needs,* and I'm being told that I should NOT include him in my estate. I want to leave something to make sure he's taken care of. Can you explain to me why this is and what I should do instead?"

Answer:

Your instinct to provide for your grandson is absolutely right, but the advice you're receiving is protecting him from an unintended consequence that could actually harm him rather than help.

Here's the issue: many disabled individuals rely on government benefits like Supplemental Security Income (SSI) or Medicaid to cover essential needs, including healthcare, housing assistance, and daily living support. These programs have strict asset limits—often as low as $2,000 in total assets. If your grandson inherits money directly, even a modest inheritance could disqualify him from these crucial benefits.

Losing government benefits often costs far more than the inheritance provides. For example, a $10,000 inheritance might disqualify him from Medicaid benefits worth tens of thousands of dollars annually.

The Solution: A Special Needs Trust

Instead of excluding your grandson, you can create a special needs trust (also called a supplemental needs trust) that allows you to leave money for his benefit without affecting his government benefits. The trust can pay for things that government programs don't cover—like entertainment, clothing, vacations, or special equipment—while preserving his eligibility for essential benefits.

Moving Forward

Don't let concern about government benefits stop you from providing for your grandson. With proper planning, you can still leave a meaningful legacy that truly improves his life without jeopardizing the support he depends on.

Contact us at (503) 235-5150 to discuss how a supplemental needs trust can help you provide for your grandson while protecting his essential benefits.

*Disability communities have largely moved away from using terminology like “special needs” in favor of “disability.” In our practice, we call “special needs trusts”supplementalneeds trusts. We still include “special needs” in our community outreach materials because the terminology is so commonly used. We tend to avoid the terms “disability trust” or “disability law” because this refers to the area of law that gets disabled people qualified for government assistance programs, not the estate planning field where we protect assets for a variety of different situations.