Special Needs Trust Lawyer in Chicago

Planning for the Future of Loved Ones With Disabilities

Protecting benefits and providing long-term security

For families caring for a loved one with disabilities, traditional estate planning may not be enough. At the Law Office of Johann Chau, we help Chicago-area families create Special Needs Trusts (SNTs) to provide financial support without jeopardizing eligibility for vital government benefits like Medicaid and SSI. Our goal is to give your loved one long-term protection and peace of mind for the entire family.

How Special Needs Trusts Work

Preserving benefits while providing financial support

A Special Needs Trust is designed to hold and manage assets for a person with disabilities without disqualifying them from government assistance. These trusts can pay for supplemental needs such as education, therapies, transportation, and personal care.

Key points about Special Needs Trusts in Illinois:

  • Preserves eligibility for benefits: Assets in an SNT are not counted toward Medicaid or SSI resource limits if properly structured.
  • Types of SNTs: Third-party trusts (funded by family members) and first-party trusts (funded with the individual’s own assets, often from a settlement or inheritance).
  • Trustee responsibilities: The trustee manages funds and ensures distributions comply with federal and Illinois regulations to avoid impacting benefits.
  • Planning considerations: Coordination with other estate planning tools, such as wills and guardianship, ensures comprehensive protection for your loved one.
  • Local relevance: In Chicago and Cook County, many families use SNTs as part of long-term planning for children or adults receiving state and federal assistance.

Frequently Asked Questions About Special Needs Trusts

Helping Chicago families plan with confidence

  • Why is a Special Needs Trust necessary?

    Without an SNT, leaving money or assets directly to a person with disabilities can disqualify them from important government benefits like Medicaid or SSI. A properly structured trust allows you to provide financial support without disrupting their eligibility, ensuring they can continue receiving essential services while benefiting from additional resources.

  • What can a Special Needs Trust pay for?

    An SNT can cover expenses that improve quality of life but are not provided by government benefits. This includes education, therapies, personal care attendants, specialized equipment, entertainment, and travel. In Chicago, families often use these trusts to provide supplemental services and activities for their loved ones beyond basic needs.

  • Who can serve as the trustee?

    You can choose a family member, trusted individual, or professional trustee to manage the trust. The trustee must understand and follow strict rules about distributions to avoid affecting eligibility for benefits. We help Chicago families evaluate the best options for their specific situation.

  • Can I create a Special Needs Trust for an adult child?

    Yes. Parents often establish SNTs for adult children with disabilities to ensure lifetime care and support. These trusts can be integrated into your overall estate plan to provide for your child when you are no longer able to.

  • What is the difference between a first-party and third-party Special Needs Trust?

    A first-party SNT is funded with the individual’s own assets, such as a personal injury settlement or inheritance, and has specific payback rules under federal law. A third-party SNT is funded by parents or other family members and does not require Medicaid payback upon the beneficiary’s death. We help Chicago families determine which option fits their needs and set it up correctly under Illinois law.