Co-Written by Tabitha Justice & Franki Parsons, Esq.
Tabitha Justice is the CEO of Just Us Retirement Solutions, specializing in Medicare education, long-term care planning, and empowering families to take control of their retirement journey.
Franki Parsons is an attorney with Ray, Winton & Kelley, PLLC, where she focuses exclusively on estate planning, elder law, and special needs trusts. With over a decade of experience and a personal passion for helping families navigate complex planning needs, Franki is recognized as one of West Virginia’s leading voices in special needs legal strategy.
When families set out to provide for a loved one with a disability, they almost always do so with good intentions. A grandmother, for example, might include her disabled grandson in her will, hoping to leave behind something that will offer comfort or security. But in cases where that loved one receives government benefits like Supplemental Security Income (SSI) or Medicaid, a simple gift or inheritance—if not handled properly—can backfire and create more harm than help. These programs have strict financial limits. For SSI, an individual cannot have more than $2,000 in countable assets. That means even a modest inheritance could disqualify someone from the very programs that provide their housing, health care, and daily support. In practical terms, we’ve seen families devastated when their loved one loses Medicaid coverage because of a gift that was meant to support them. In some cases, they’re given 30 days to come up with thousands of dollars to remain in a care facility or face eviction. The money is often gone before benefits can be reinstated, and the stress of navigating requalification only adds to the crisis.
The solution is to use a Special Needs Trust. These trusts are designed specifically for individuals with disabilities who receive means-tested benefits. When money is placed in a properly structured trust, it does not count toward the recipient’s personal asset limit. The funds can still be used for that person’s benefit—paying for things like therapy, transportation, specialized equipment, or quality-of-life experiences—but without putting their benefits at risk. The trust is legally separate and managed by a trustee, who ensures that the distributions follow both the terms of the trust and benefit eligibility guidelines. Families often try to work around this by leaving the inheritance to another sibling, with the hope that they’ll use it to help their disabled brother or sister. While the intention may be noble, this approach is extremely risky. The sibling now legally owns the money. If they go through a divorce, face legal issues, pass away, or simply change their mind, the funds could be lost entirely. There’s no legal protection in place for the intended beneficiary.
This type of mistake is more common than people realize, and often it’s the result of not knowing a Special Needs Trust exists—or assuming that any estate planning attorney will automatically include this kind of protection. In truth, these trusts require highly specific legal language and must be drafted by someone with experience in special needs and elder law planning. Errors can easily disqualify the trust or trigger penalties. Even something as seemingly simple as including the wrong payback provision, or naming the wrong type of trustee, can undo everything. While Special Needs Trusts are commonly used for individuals with lifelong disabilities, they are also an important consideration for anyone who may eventually qualify for Medicaid or SSI due to illness or injury. That’s why many estate plans now include a toggle clause—language that activates the trust structure only if the beneficiary is receiving benefits at the time of inheritance. This approach allows families to prepare for the unknown while still keeping flexibility in place.
At the heart of all of this is one goal: ensuring that your care, support, and generosity don’t come with unintended consequences. With the right legal tools and professional guidance, families can leave a lasting legacy that protects—not endangers—the well-being of the people they love.
The Just Us Final Take
When it comes to supporting a loved one with a disability, intention alone isn’t enough—structure matters. Leaving money in the wrong way can cause someone to lose everything they depend on, but a properly drafted Special Needs Trust can preserve benefits and provide meaningful support. If you’re planning your estate or concerned about how to protect someone receiving SSI or Medicaid, the best first step is to speak with a qualified legal professional.
For legal questions, contact Franki Parsons, Esq. at Ray, Winton & Kelley, PLLC
📞 (304) 343-2222
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