Special Needs Trust Lawyer in Northern Virginia

How a Special Needs Trust Lawyer Can Help Protect a Loved One’s Benefits

A special needs trust lawyer in Northern Virginia can help when you are worried that an inheritance, settlement or other assets could interfere with the public benefits your loved one depends on. Without careful planning, money placed directly in a beneficiary’s name can raise eligibility questions, leaving families unsure how to provide financial support without creating new problems.

A special needs trust can become an important component of Trust-Based Estate Planning when a family wants to provide for a loved one with disabilities while accounting for that person’s long-term needs and benefits.

To address those concerns, McCarthy & Akers, PLC | Estate Planning Attorneys helps Northern Virginia families determine whether a first-party or third-party special needs trust fits their circumstances. We draft trusts with applicable federal and Virginia provisions, explain how distributions can affect benefits, and show how the trust can fit within your family’s broader estate planning goals.

If you are planning for a loved one with a disability or want to review an existing special needs trust, call (703) 452-4988 or complete our online contact form to schedule a consultation.

Key Takeaways

Here is what to know before you create a special needs trust or rely on one that already exists:

• A properly structured trust can hold assets for a disabled person while helping address benefit eligibility for programs such as Supplemental Security Income (SSI) and Medicaid.
• A first party special needs trust uses money or property that already belongs to the beneficiary.
• A third party special needs trust uses money or property provided by someone else, such as a parent, grandparent, or other family member.
• A qualifying first party special needs trust generally must include a Medicaid payback provision and be established for a person with a disability who is under age 65 at the time the trust is created.
• Direct cash payments and certain shelter-related distributions can affect SSI even when the trust itself does not count as a resource.
• McCarthy & Akers, PLC can help you choose the right trust structure, prepare the necessary estate planning documents, and explain how the plan can support your loved one’s needs and public benefits.

What a Special Needs Trust Actually Is

A special needs trust is designed to hold assets for the benefit of a person with a disability while helping address the resource limits that can apply to Medicaid, Supplemental Security Income, and other needs-based government benefits.

In Virginia, these trusts are shaped by both federal benefits law and the Virginia Uniform Trust Code. More specifically, Virginia Code § 64.2-779.10 addresses trusts for beneficiaries with disabilities. Other provisions in Chapter 7 are also important because they govern how trusts are created, administered, and managed.

A special needs trust can work differently from leaving assets directly to a family member with a disability:

• Direct Inheritance: Money inherited directly by the beneficiary may affect SSI or Medicaid eligibility.
• Benefit Eligibility: Countable resources can affect eligibility for Supplemental Security Income or Medicaid.
• Trust Structure: A properly structured special needs trust can hold assets for the beneficiary’s benefit while addressing applicable benefit rules.
• Trustee Management: The trustee manages distributions according to the trust terms and applicable benefit rules.

First-Party vs. Third-Party Special Needs Trusts

Two common types of special needs trusts differ based on whose money or property funds the trust:

First-Party Special Needs Trust (SNT)

This type of trust uses money or property that already belongs to the beneficiary, such as settlement funds or an inheritance.

A qualifying first-party SNT can be created by the beneficiary, a parent, grandparent, legal guardian, or court, and it generally must include a provision requiring repayment to the state or states for certain Medicaid assistance after the beneficiary’s death.

Third-Party Special Needs Trust (SNT)

This type of trust uses money or property that belongs to someone other than the beneficiary, such as a parent, grandparent, or other family member.

It is often created as part of a broader estate plan, and because the beneficiary did not own the assets used to fund it, a properly structured third-party SNT generally does not have the same Medicaid payback requirement as a first-party SNT. After the beneficiary’s death, any remaining assets can pass according to the terms of the trust.

What a Special Needs Trust Can and Cannot Pay For

What a Special Needs Trust Can Pay For

A special needs trust can generally help cover supplemental expenses that support the beneficiary’s quality of life:

• Education and Therapy: The trust can generally pay for education, therapy, and services not covered by Medicaid.
• Recreation and Travel: Trust funds can support recreation, travel, entertainment, and similar quality-of-life expenses.
• Personal Care: The trust can pay for a personal care attendant or supplemental caregiving support.
• Medical and Personal Needs: Trust funds can generally cover adaptive equipment, technology, and certain uncovered medical or dental costs.

What a Special Needs Trust Should Handle Carefully

Some distributions require more care because they can affect Supplemental Security Income:

• Direct Cash Payments: Money paid directly from the trust to the beneficiary can reduce SSI.
• Shelter Expenses: Payments for certain shelter costs can also reduce SSI.

Because benefit rules can vary depending on the payment and the government programs involved, the trustee should review distributions carefully and follow the trust terms and applicable benefit rules.

Benefits of Working With a Special Needs Planning Attorney in Northern Virginia

A special needs planning attorney at McCarthy & Akers, PLC can help families build a plan that reflects their loved one’s needs, financial circumstances, and long-term goals:

• Trust Language Tailored To Your Family: We prepare trust provisions that account for applicable Medicaid and Supplemental Security Income rules.
• Clear Guidance On First-Party and Third-Party Planning: We explain how each structure works and help you consider which approach fits your family and funding source.
• Support For Your Trustee: We explain how different distributions can affect benefits so the trustee can make informed decisions.
• Coordination With ABLEnow: We discuss how a Virginia ABLE account (a tax-advantaged savings program for eligible people with disabilities) may work alongside a special needs trust as part of the broader plan.
• A Holistic Estate Planning Approach: As part of Trust-Based Estate Planning, we review the special needs trust together with your will and other estate planning documents so the pieces work together around your family’s goals.

How the Special Needs Trust Process Works With McCarthy & Akers, PLC

Step 1: Schedule a Consultation

We begin by learning about your family, your loved one’s needs, and the assets involved to identify the goals you want the plan to address.

Step 2: Choosing the Right Structure

We review the source of the funds and your family’s goals to help you consider whether a first-party or third-party special needs trust fits your situation.

Step 3: Drafting Your Trust

We prepare the trust to reflect your family’s goals and the applicable federal and Virginia requirements, including a Medicaid payback provision when federal law calls for one.

Step 4: Selecting a Trustee

We help you consider who is well suited to manage the trust, whether that is a family member, a professional trustee, or a combination of both.

Step 5: Funding and Ongoing Guidance

We help coordinate the funding of the trust and remain available to support your family and trustee as questions arise over time.

Special Needs Planning Matters We Handle

McCarthy & Akers, PLC handles a range of special needs planning matters for Northern Virginia families, including:

• First party special needs trusts
• Third party special needs trusts
• Trustee guidance
• Coordination with ABLEnow accounts
• Guardianship coordination
• Sibling and family planning
• Legacy Letter planning

Why Work With McCarthy & Akers, PLC

Planning for a loved one with a disability calls for thoughtful legal work and genuine care. At McCarthy & Akers, PLC, we take time to learn your family’s story, explain your options in clear language, and create a plan that reflects your personal and financial goals.

Our team takes a personal approach to Trust-Based Estate Planning, with clear communication and attention to the details that matter to your family. We focus on building lasting relationships and supporting families throughout Northern Virginia, including Great Falls and Manassas, with plans that reflect their goals and priorities.

How Special Needs Trusts Fit Into Trust-Based Estate Planning

Trust-Based Estate Planning considers not only who should receive assets, but also how an inheritance can affect a beneficiary’s circumstances. For a beneficiary with special needs, a carefully structured trust can help provide for that person while addressing applicable benefit and eligibility considerations.

A special needs trust can therefore become part of a larger family plan for protecting and supporting a loved one over the long term. McCarthy & Akers incorporates this type of trust into the broader estate planning strategy rather than treating the Trust as a standalone document.

Schedule Your Consultation About a Special Needs Trust

If you are considering a special needs trust for a child or another loved one, McCarthy & Akers, PLC | Estate Planning Attorneys can help you review your options and decide how the trust should fit within your estate plan.

If you are in Great Falls, VA, or another Northern Virginia community, call (703) 452-4988 or complete our online contact form to schedule a consultation.

Trust McCarthy & Akers to be your partner in planning for the future.