NEWS & RESOURCES

Authored by: Adelae Winters, Wealth Advisor

When a family includes a member with a disability, financial planning takes on a deeper dimension. The focus often shifts from traditional goals like retirement to something more enduring: How do we ensure our loved one is supported—not just today, but for a lifetime?

It’s a question many families carry quietly, and one that deserves thoughtful, informed planning. The good news is that there are well-established strategies designed specifically for these situations. With the right approach, families can create a plan that balances financial stability, flexibility, and long-term care.

Understanding the Building Blocks

For many families, planning begins with understanding the tools available to them.

ABLE Accounts: Flexible, Tax-Advantaged Savings

ABLE (Achieving a Better Life Experience) accounts allow eligible individuals with disabilities to save and invest without jeopardizing access to essential benefits like Supplemental Security Income (SSI) or Medicaid.

These accounts offer meaningful flexibility. Contributions (currently up to $19,000 per year) can be used for a wide range of qualified expenses, including housing, transportation, healthcare, education, and assistive technology. Earnings grow tax-free when used for these purposes, and balances up to $100,000 are excluded from SSI resource limits.

Eligibility previously required disability onset before age 26, but as of 2026 that was extended to age 46. This notable change creates a planning opportunity for those adults who may not have previously qualified.

Special Needs Trusts: Protecting Benefits While Enhancing Quality of Life

Another cornerstone of special needs planning is the Special Needs Trust (SNT). These trusts are specifically designed to hold assets for the benefit of a person with disabilities without affecting eligibility for government programs. Without this structure, even a well-intentioned inheritance or financial gift could unintentionally disrupt access to critical benefits.

Third-party Special Needs Trusts, often funded by parents or family members, are commonly used within estate plans. They also provide the flexibility to cover expenses that public benefits may not—such as travel, technology, or additional personal care—helping to enhance quality of life over time.

Why Preserving Benefits Matters

A key challenge in special needs planning is navigating strict financial thresholds tied to government programs. For example, SSI limits countable assets to just $2,000 for individuals. This means that even modest savings or gifts held in a loved one’s name can unintentionally exceed the limit and result in a loss of benefits.

This is where coordination becomes critical. Tools like ABLE accounts and Special Needs Trusts allow families to build financial resources while maintaining eligibility. Many families also benefit from working alongside local support organizations, such as the Chelan-Douglas Developmental Disabilities Program, as well as attorneys, CPAs, and advisors versed in this arena when making important financial decisions.

Planning Beyond Finances

Financial strategies are only one piece of the puzzle. Long-term planning also includes preparing for caregiving, decision-making, and continuity of support. A comprehensive estate plan often includes a will that directs assets into a Special Needs Trust rather than to the individual directly, as well as the designation of guardians or conservators where appropriate.

Many families also create a “letter of intent.” While not a legal document, it can be one of the most meaningful. It provides future caregivers with insight into daily routines, preferences, relationships, and personal details that help ensure continuity of care.

Using Life Insurance to Fund Long-Term Support

Life insurance is often a practical way to ensure long-term financial support is in place.

In many cases, survivorship policies are used to fund a Special Needs Trust after both parents have passed. These policies can offer a cost-effective solution, helping ensure that sufficient resources are available when they are needed most.

As with any financial strategy, the right approach depends on each family’s unique circumstances, including assets, family structure, and anticipated care needs. Regular reviews are essential as those needs evolve over time.

Moving Forward with Confidence

No two families are alike, and there is no one-size-fits-all approach to planning for special needs.

But with thoughtful preparation and the right strategies in place, families can create a plan that supports both stability and quality of life—now and for years to come.

If you have questions about how these strategies apply to your situation, working with a coordinated team of professionals and community resources can help provide clarity and guidance. Reach out to us today to learn more.