Are you planning for a loved one with a disability in Spokane Valley, Washington? Leaving money to that person outright can interfere with their eligibility for federal and state programs. Call our Spokane Valley special needs trust lawyers at Elevated Estate Planning, P.S., for a confidential consultation at (509) 328-2150 to learn more about your options.
We have decades of combined experience handling special needs planning in Washington. We’re here to help you look out for your loved one and help maintain the support they need to thrive.
Why Choose Elevated Estate Planning, P.S. to Prepare a Special Needs Trust?
A special needs trust must account for public-benefit rules, the beneficiary’s long-term needs, and proper trust administration. Poor planning can create problems that affect the support intended for the beneficiary. Elevated Estate Planning, P.S. focuses exclusively on estate planning and related matters, including trusts for individuals with disabilities.
Families choose our Spokane, WA firm because:
- Our Spokane Valley estate planning attorneys have more than 25 years of combined experience.
- We understand Washington trust law and the rules governing needs-based benefits.
- We develop plans for minor children, adults with disabilities, and older beneficiaries who need continuing assistance.
- We help families choose trustees and provide guidance about distributions and recordkeeping.
- Our Elevated Care Program offers continuing support as laws, finances, and family circumstances change.
- Clients receive access to educational resources and secure digital document storage.
Contact us today to speak with a Spokane Valley special needs trust attorney about your family’s needs and goals.
What Is a Special Needs Trust?
A special needs trust is a legal arrangement that holds property for a person with a disability. The trustee controls the assets and decides when distributions should be made under the terms of the trust. The beneficiary generally cannot demand money, revoke the trust, or direct how the assets are used.
Under Washington Medicaid rules, a qualifying individual special needs trust generally must be irrevocable, established for the sole benefit of a disabled person under age 65 by an authorized person or entity, and include provisions reimbursing states for certain Medicaid expenses from funds remaining when the trust ends.
Depending on the beneficiary’s needs and benefit rules, trust funds may be used for:
- Medical, dental, or therapeutic care not otherwise covered
- Education and vocational training
- Computers, phones, and assistive technology
- Transportation or vehicle modifications
- A caregiver, companion, or care manager
- Clothing, furniture, and personal items
- Travel, recreation, and hobbies
- Legal, accounting, and trustee expenses
These funds can help improve the beneficiary’s quality of life while preserving public benefits when possible.
What Are the Different Types of Special Needs Trusts?
Special needs trusts generally fall into two broad categories. A third-party trust is funded with property belonging to someone other than the beneficiary, such as a parent or grandparent. A first-party or self-settled trust holds assets that belong to the beneficiary, such as existing savings or proceeds from a personal injury settlement.
Self-settled trusts face additional requirements. Under Washington Medicaid rules, a qualifying individual special needs trust generally must be irrevocable, created for the sole benefit of a disabled person under age 65, and contain provisions reimbursing states for certain Medicaid expenses from funds remaining when the trust ends.
Is a Special Needs Trust Different From a Supplemental Needs Trust?
Special needs trust and supplemental needs trust are often used to describe the same general planning tool. Both refer to a trust designed to provide resources beyond what a beneficiary receives from government programs while protecting eligibility when possible.
What defines these trusts is that the trustee must have appropriate discretion, the beneficiary’s control must be limited, and distributions must be made with the applicable benefit rules in mind.
What Does It Mean for Benefits to Be Means-Tested, and When Is a Person Disqualified?
A means-tested program considers the applicant’s income, assets, or both when determining eligibility for federal benefits programs. SSI and many Medicaid programs use financial eligibility standards. By contrast, Social Security Disability Insurance and Medicare are generally based on work history or other eligibility criteria rather than the recipient’s current asset level.
For 2026, the SSI resource limit is $2,000 for an individual and $3,000 for a couple. Countable resources can include cash, money in bank accounts, investments, and property the applicant can convert to cash. Certain assets, including a primary residence and usually one vehicle, may be excluded.
A person may lose eligibility when countable resources exceed the applicable limit. A properly structured special needs trust can keep the trust principal from being treated as the beneficiary’s available resource.
What Types of Individuals Use Special Needs Trusts?
Special needs trusts are used by people with many different disabilities and support needs. They may be appropriate for a person who receives, or may later need, benefits with income or resource limits.
An SNT may be appropriate for:
- A child with an intellectual or developmental disability
- An adult who receives SSI or needs Medicaid-funded services
- A person with a physical disability who requires assistive care or equipment
- Someone who receives a personal injury or medical malpractice settlement
- A beneficiary with a mental health condition that limits their ability to manage money
- A person with a progressive illness who may need additional support over time
- An individual who is about to receive an inheritance that could affect public benefits
A person does not need to be completely unable to make decisions or live independently to benefit from an SNT. Some beneficiaries manage parts of their daily lives and participate in decisions about how trust funds are used.
Who Should Serve as Trustee?
The trustee should be someone comfortable with managing the investments, keeping records, filing tax documents, and deciding whether requested distributions are permitted. The trustee must consider both the trust language and the rules of every benefit program the beneficiary uses.
Possible trustees include:
- A responsible family member
- A trusted friend
- A professional fiduciary
- A bank or trust company
- A nonprofit organization managing a pooled trust
- Individual and professional co-trustees
A family member may know the beneficiary well but have limited experience with SSI or Medicaid rules. A professional may offer technical knowledge and continuity but charge fees and have less day-to-day contact with the beneficiary. An experienced attorney can help you determine the right situation for your needs.
What Other Estate Planning Documents Does an Individual With an SNT Need?
A special needs trust should be part of a coordinated estate plan. Depending on the beneficiary’s age and capacity, the broader plan may include:
A Will or Revocable Living Trust
Parents and other relatives can direct an inheritance into the SNT through a will or revocable living trust. The documents should clearly identify the trust and provide instructions for any property intended for the beneficiary.
Updated Beneficiary Designations
Life insurance, retirement accounts, annuities, and payable-on-death accounts pass according to beneficiary forms rather than a will. These designations must be reviewed carefully. Naming the person with disabilities directly can defeat the planning accomplished through the SNT.
Durable Financial Power of Attorney
An adult with sufficient capacity may use a financial power of attorney to authorize a trusted agent to manage matters outside the trust. The trustee only controls trust property and does not automatically have authority over the beneficiary’s personal finances.
Healthcare Power of Attorney and Advance Directive
A healthcare power of attorney allows the beneficiary to select someone to make medical decisions if they become unable to do so. An advance directive can document preferences for end-of-life treatment. These documents should be prepared while the individual has the legal capacity to sign them.
How Can an Attorney Help Develop Your Special Needs Trust?
Special needs planning involves more than drafting the trust itself. An attorney can evaluate the source of the assets, identify the public benefits involved, and determine which trust instrument is appropriate.
A special needs trust lawyer can also:
- Draft the trust to comply with Washington and federal requirements
- Coordinate wills, trusts, and beneficiary designations
- Explain Medicaid reimbursement provisions
- Help select a trustee and successor trustees
- Structure inheritances and settlement proceeds
- Advise trustees about distributions and recordkeeping
- Coordinate the trust with an ABLE account when appropriate
- Review an existing trust for outdated or incomplete terms
- Adjust the plan after a change in benefits, health, family structure, or finances
Reach out to our law firm today to learn more about how we can help.
Contact our Spokane Valley Special Needs Trust Attorneys for a Confidential Consultation
A well-designed special needs trust can protect access to essential services while giving a loved one resources for care, education, transportation, recreation, and other needs. The plan should reflect the beneficiary as an individual rather than treating the trust as a standard form.
Elevated Estate Planning, P.S. has more than 25 years of combined experience helping Washington families prepare for the future. We can help you choose the appropriate trust, coordinate it with the rest of your estate plan, and give the trustee clear guidance.
Call today to schedule a consultation with a Spokane Valley special needs trust lawyer.