Special Needs Trusts
Thoughtful Planning for the Ones You Love Most
Supporting a child or adult with disabilities means planning beyond today. A Special Needs Trust allows you to leave financial resources to a loved one without jeopardizing eligibility for Medicaid, SSI, or other essential benefits.
It ensures your beneficiary receives ongoing care, support, and opportunities — not unnecessary financial hardship.
At Front Range Estate Planning, you’ll work with a compassionate special needs trust attorney in Denver who structures every plan with legal precision, dignity, and long-term stability in mind.
What a Special Needs Trust Can Do
A properly drafted special needs trust can provide:
Benefit Protection
Preserve eligibility for government assistance programs.
Long-Term Financial Security
Ensure funds are available for care, housing, education, and quality of life.
Responsible Asset Management
Peace of Mind for Parents, Guardians & Siblings
Protect your loved one, even when you’re no longer here.
Important Facts About Special Needs Trusts
There are several key things every family should know before planning for a loved one with disabilities:
- Federal law recognizes special needs trusts and allows disabled individuals to receive the same estate planning protections as anyone else.
- These trusts help preserve eligibility for Medicaid and Supplemental Security Income (SSI), which only cover basic needs like food, housing, and clothing.
- Funds in a special needs trust can pay for additional quality-of-life expenses, including education, recreation, therapy, technology, and personal care.
- Establishing trust before a beneficiary receives an inheritance, settlement, or gift ensures assets transfer smoothly without disrupting benefits.
- A properly structured special needs trust also shields assets from creditors, financial exploitation, and legal claims.
Common Mistakes to Avoid
Well-intended choices can unintentionally jeopardize benefits, relationships, or financial security. Here are some common pitfalls to avoid:
Assuming Parental Authority Equals Financial Control
Parents are natural guardians, but that does not grant access to a child’s financial assets, lawsuit proceeds, or gifts. Conservatorship may still be required.
Waiting Until Age 18 to Plan
Disinheriting a Disabled Loved One
Relying on Someone Else to “Hold Money”
Giving extra funds to another family member with verbal instructions is risky because:
- They aren’t legally required to use it for the beneficiary.
- Divorce, bankruptcy, or lawsuits could wipe out the assets.
- It may trigger unintended gift tax consequences.
A properly drafted special needs trust keeps those assets protected and used as intended.
Our Special Needs Trust Process
Get Educated
As soon as a special needs trust becomes a possibility, education is key. Front Range Estate Planning offers free, no-obligation consultations so families can confidently explore options and requirements. Other sources of information include:
Design the Trust
Once a special needs trust is determined to be appropriate, we help you make essential decisions, including:
- Choosing a trustee
- Identifying successors
- Outlining distribution standards
- Drafting legally compliant language to preserve benefit eligibility.
Decide When to Establish It
A special needs trust may be created before it’s needed, alongside a will, or in anticipation of a future settlement or inheritance. Each option comes with different legal and practical considerations, and we help you determine the best timing for your family.
Fund the Trust
Client Testimonials
What an amazing heart! Kurt is responsive, resourceful, and trustworthy
Theresa C.
Kurt helped me and my wife with our estate planning. He helped educate us on the whole process, and took the careful time to answer all of our questions. It was important for us to work with someone who was knowledgeable and would get things done right, and Kurt definitely met all of these expectations. His rates are very competitive too – so would highly recommend Front Range!
Andrew N.
Front Range Estate Planning did a great job in helping me set up a will and other professional documents. This was something I had put off for a long time and Kurt Walberg made it easy and affordable. I highly recommend him!!!
Jill S.
Frequently Asked Questions About Special Needs Trust
What is a special needs trust?
It’s a legal trust that protects assets for a disabled individual while preserving eligibility for government benefits.
Can family members contribute to the trust?
Yes. They can contribute through inheritances, gifts, life insurance, or planned giving.
Does a special needs trust replace other estate planning documents?
No. It should be part of a comprehensive plan. Learn more about Estate Planning.
When should I set one up?
The earlier your planning begins, the better protected your loved one will be.