Special Needs Trusts: How to Protect Your Assets for the Benefit of Your Loved One with Special Needs

Why Special Needs Planning Is Essential

Families in El Paso, Las Cruces, and surrounding areas in Southern New Mexico who have a loved one with a disability must take proactive steps to protect their financial future. Without proper planning, an inheritance or financial gift could unintentionally disqualify them from essential government benefits like Supplemental Security Income (SSI) and Medicaid.

A special needs trust is a critical estate planning tool that ensures your loved one maintains eligibility for public benefits while still receiving additional financial support for their well-being. At Townsend Allala, Coulter & Kludt, PLLC, our special needs planning attorneys in El Paso work closely with families to navigate the complexities of special needs estate planning, ensuring long-term security for individuals with disabilities.

If you are looking for a special needs estate planning attorney near me in El Paso or Southern New Mexico, our team can guide you through the process to ensure your loved one is fully protected.

What Is a Special Needs Trust and How Can It Help?

A special needs trust is a legal arrangement that holds assets for the benefit of a person with disabilities while protecting their eligibility for government assistance programs. These trusts provide supplemental financial support for needs not covered by public benefits, such as:

• Medical and dental expenses beyond Medicaid coverage
• Home modifications and accessibility improvements
• Education and vocational training
• Specialized transportation needs
• Recreational activities and travel

Our special needs planning lawyers in El Paso ensure that the trust is structured correctly to comply with federal and state laws while maximizing financial benefits for your loved one.

Types of Special Needs Trusts

First-Party Special Needs Trusts (Self-Settled SNTs)

This trust is funded with assets belonging to the individual with special needs, such as an inheritance, legal settlement, or personal savings. However, any remaining funds in the trust must be used to reimburse Medicaid upon the beneficiary’s passing.

Third-Party Special Needs Trusts

A third-party special needs trust is created and funded by a parent, grandparent, or another relative. Unlike a self-settled trust, it does not require Medicaid payback, meaning any remaining assets can be distributed to other family members or charitable organizations. This is often the preferred option in special needs estate planning.

Our special needs estate planning attorneys help families throughout El Paso and Southern New Mexico determine the best trust structure to protect their loved one’s financial future.

Why You Should Set Up a Special Needs Trust Now

Many families delay special needs estate planning, assuming they can leave assets directly to their loved one. However, doing so can create serious complications, including:

• Loss of government benefits – A direct inheritance may push your loved one over income limits, making them ineligible for Medicaid and SSI.
• Financial mismanagement – Your loved one may not have the ability to manage a large sum of money effectively.
• Legal complications – Without proper planning, the funds may need to go through probate, delaying access to essential resources.

A special needs planning attorney near me can help you take proactive steps to avoid these risks while ensuring your loved one’s long-term financial security.

The Role of a Special Needs Planning Attorney

At Townsend Allala, Coulter & Kludt, PLLC, our special needs planning attorneys in El Paso guide families through every step of creating a legally sound trust. Our services include:

• Drafting and structuring special needs trusts to comply with Texas and New Mexico laws
• Advising on funding strategies, including life insurance, investments, and real estate
• Coordinating estate plans to protect all heirs while prioritizing the needs of a disabled family member
• Helping trustees manage and administer the trust properly

If you are searching for a special needs estate planning attorney near me, our firm provides personalized, experienced legal support to help you navigate this complex process.

Why Choose Townsend Allala, Coulter & Kludt, PLLC?

Families in El Paso, Las Cruces, and the surrounding areas trust Townsend Allala, Coulter & Kludt, PLLC for their special needs estate planning because:

• We have decades of experience in elder law and special needs planning.
• We provide personalized legal solutions tailored to each family’s unique situation.
• We offer comprehensive estate planning services, ensuring all aspects of your financial and legal future are covered.

Whether you are setting up a special needs trust for the first time or need to update an existing plan, our special needs planning lawyers are here to help.

Frequently Asked Questions

Can I Set Up a Special Needs Trust Without a Lawyer?

While it is possible to create a special needs trust without an attorney, mistakes in trust language or funding can lead to unintended consequences, such as disqualifying your loved one from government benefits. A special needs estate planning attorney ensures the trust is structured correctly and complies with all legal requirements.

How Do I Fund a Special Needs Trust?

A special needs planning attorney can help you determine the best funding sources, including:

• Life insurance policies
• Retirement accounts
• Gifts from family members
• Investments and real estate

Is a Special Needs Trust the Same as a Guardianship?

No. A special needs trust manages financial resources for a person with disabilities, while guardianship involves legal decision-making authority over their personal and medical affairs. Our firm can assist with both special needs planning and guardianship arrangements.

Speak With an Experienced Special Needs Planning Attorney Today

Planning for a loved one with special needs requires careful legal and financial planning. At Townsend Allala, Coulter & Kludt, PLLC, we help families throughout El Paso, Las Cruces, and Southern New Mexico create comprehensive estate plans that protect their loved ones and secure their futures.

If you need a special needs planning attorney in El Paso or a special needs estate planning attorney near me, contact our elder law firm online or give us a call at 915-533-0007 today to schedule a consultation. We are here to provide the legal guidance you need to make informed decisions about your family’s future.

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