If you are looking for a Chicago, IL, special needs trust lawyer, our team designs trusts that protect benefits and fund meaningful support. Kravets Law Group brings years of combined planning experience, Illinois admissions, and careful coordination with families and care teams. Book a free consultation to discuss first- and third-party options and how they align with your goals.
Special Needs Trust Lawyer Chicago, IL
A special needs trust allows funds to be set aside for a person with a disability without affecting means-tested benefits such as SSI or Medicaid. The trust pays for supplemental items and services that improve quality of life, such as therapies, transportation, education, technology, housing support, and recreation, while public benefits continue to cover essentials. Our special needs trust planners begin with a clear picture of current benefits, diagnoses, daily support, housing, and long-term goals. With that context, we recommend trust types and drafting choices that fit the person at the center of the plan.
There are two primary approaches. A third-party SNT is funded with someone else’s assets, often parents or grandparents, and does not require Medicaid payback on the remainder. A first-party trust holds the beneficiary’s own assets, such as lawsuit proceeds or an inheritance received outright, and includes a Medicaid payback provision upon the beneficiary’s death. Our special-needs fiduciary lawyers explain how each works, who can serve as trustee, and the role of pooled trusts administered by nonprofits when individual trustees are impractical. We draft distribution standards and trustee powers in plain language, with examples that help future trustees make good decisions.
Funding and administration require attention to detail. Our special needs trust attorneys help retitle accounts, coordinate court approvals as needed, and set up record-keeping that complies with both trust law and benefit agency requirements. Trustees must avoid making cash gifts to beneficiaries that could be treated as income and instead pay providers directly for goods and services. We provide a practical guide for expenditures, reporting, and taxes. Housing is a frequent question because payments for rent or food can affect SSI. We outline options and document choices, so everyone understands the tradeoffs.
Family dynamics matter. Our Chicago special needs trust lawyers discuss backup trustees, trust protectors, and how to include siblings or caregivers in oversight without creating conflict. For blended families, we design plans that support the child with a disability while treating other children fairly. When a lawsuit or settlement is involved, we coordinate with litigation counsel so funds flow correctly and liens are addressed.
Why Experience Matters In Special Needs Planning
Small drafting choices can safeguard benefits or jeopardize them. Counsel familiar with SSI, Medicaid, ABLE accounts, and agency reporting builds trust, ensures payments are for the right things, documents decisions properly, and prepares future trustees to do the job with confidence. Our team has:
- Experience with first-party and third-party SNTs, pooled trust coordination, and trustee guidance across Chicagoland.
- Attorneys trained in Illinois and federal benefit rules who draft usable instructions for trustees.
- Consistent client referrals for patient, family-centered planning.
- Collaboration with case managers, financial advisors, and nonprofits to support long-term administration.
“I’ve collaborated with Daniel Kravets on matters multiple times, and he’s an excellent attorney for corporate needs. He’s extremely dependable for reviewing commercial contracts and for corporate structuring. I highly recommend Daniel and his firm for anyone looking for an attorney for their business.” – Ilya Zlatkin
With Kravets Law Group, your plan will support independence without risking benefits. We draft, fund, and coach trustees so the trust works as intended. Book a free consultation to create a special needs plan that brings clarity and peace of mind.
Types of Special Needs Trust Cases We Handle
Families who care for loved ones with disabilities often face questions about how to provide for their future. A special needs trust can be a useful tool to protect assets while keeping eligibility for government programs in place, and your Chicago, IL special needs trust lawyer can help you create it. At Kravets Law Group, we’re ready to use our 10+ years of experience to protect your future and your legacy. Read on to see our services, and contact us today to get started.
First Party Special Needs Trusts
A first party special needs trust is funded with the individual’s own assets, such as an inheritance or legal settlement. With the help of your special needs planning attorney, you can allow those funds to be used for the person’s care without affecting access to public benefits.
Third Party Special Needs Trusts
A third party trust is funded by someone other than the beneficiary, such as a parent or grandparent. This option allows family members to set aside money for a loved one with disabilities without impacting their eligibility for programs like Medicaid or Supplemental Security Income.
Pooled Special Needs Trusts
A pooled trust combines resources from multiple beneficiaries into a single larger trust that is managed by a nonprofit organization. As your Chicago special needs trust lawyer can explain, each beneficiary has a separate account, but the funds are invested together for efficiency and management.
Litigation Settlement Trusts
When a person with a disability receives a settlement from a lawsuit, it can affect their eligibility for benefits if not structured properly. A litigation settlement trust provides a way to hold those funds while protecting long-term financial stability.
Supplemental Care Trusts
Your special needs estate planning attorney can also help you create a supplemental care trust. A supplemental care trust is designed to cover expenses beyond basic needs that are not paid for by public programs. These expenses may include personal items, hobbies, therapies, or other services that improve quality of life.
Family Funded Trusts
Families sometimes create trusts during their lifetime to contribute assets for the future care of a child or relative with special needs. These trusts can be flexible and can be coordinated with broader estate planning strategies. Your disability trust attorney can help you protect your family’s future.
Remainder Beneficiary Trusts
In some cases, families want to provide for a loved one with a disability while also planning for what happens when that person passes away. A remainder beneficiary trust sets out clear instructions for how leftover funds are distributed to other family members or charities.
Contact Us Today
At Kravets Law Group, we know that planning for the future of a loved one with disabilities requires care and attention. We are committed to working with families to create trusts that meet both immediate needs and long-term goals. We also assist with a wide variety of other estate planning services, ranging from wills to probate. If you are considering a special needs trust, contact us today to see how a Chicago special needs trust lawyer from our team can help.
Common Reasons To Establish A Special Needs Trust
At Kravets Law Group, we help families create long-term plans that protect loved ones with disabilities while supporting their independence. Our Chicago, IL special needs trust lawyer provides clear, actionable advice backed by years of experience. Families rely on us because we take a personalized, steady approach to estate planning. A special needs trust offers vital financial protection, and understanding the reasons to establish one can help you make confident decisions for the future.
Preserving Eligibility for Government Benefits
Many families with disabilities rely on programs such as SSI and Medicaid. These benefits provide essential medical coverage and financial support, but they come with strict income and asset limits. Without a special needs trust, an inheritance or financial gift can unintentionally disqualify someone from the assistance they depend on.
By placing assets in a special needs trust, you provide financial resources without disrupting eligibility for these programs. We guide families through the specific requirements that keep the trust compliant and beneficial. This step protects long-term stability while giving your loved one access to additional funds for items and services that enhance their quality of life.
Providing Long-Term Financial Management
A special needs trust allows you to appoint a trustee to manage funds responsibly, making decisions based on your instructions and your loved one’s best interests. Many clients choose this option because they want reliable, structured oversight rather than leaving assets to a beneficiary who may not be able to manage money independently.
We help families decide who should serve as trustee and discuss when a professional trustee may be appropriate. This guidance creates a clear plan for consistent financial management long after you are no longer able to provide day-to-day support. With a well-designed trust, you can feel confident that your loved one will have ongoing financial care that aligns with your wishes.
Covering Needs Not Paid for by Public Benefits
Public programs offer limited coverage and do not pay for many items that contribute to comfort and independence. A special needs trust can cover a wide range of expenses, such as:
- Therapy services not covered by insurance
- Assistive technology and specialized equipment
- Education and training
- Transportation costs
- Travel, recreation, and personal items that enrich daily life
Families appreciate the flexibility this type of trust provides. Funds can support meaningful, life-enhancing experiences without interfering with benefits that supply essential care. We help structure the trust so it clearly outlines permissible expenditures and offers guidance to future trustees.
Avoiding Family Conflicts
Without a formal legal structure, well-intentioned relatives may try to “help” by giving money directly or contributing assets informally. These actions can lead to unintended benefit disruptions, arguments among family members, or confusion about who controls the funds. A special needs trust eliminates uncertainty by creating a legally recognized framework for managing support.
Our Chicago special needs trust lawyer works with families to establish a trust that reduces stress, prevents misunderstandings, and maintains harmony. This step is especially important when multiple relatives want to contribute financially or when siblings may later share responsibilities for care.
Protecting Settlements or Legal Awards
If your loved one receives a personal injury settlement or legal award, a special needs trust can protect those funds while preserving essential care programs. Courts frequently require or recommend this structure for minors or adults with disabilities who cannot manage large sums of money independently.
We assist clients with creating and funding these trusts in coordination with litigation teams and financial institutions. This process helps preserve the long-term value of the settlement and supports a lifetime of needs.
Building A Secure Future For A Vulnerable Loved One
A special needs trust creates stability, dignity, and financial protection. You can trust our Chicago special needs trust lawyer to offer dependable and straightforward counsel rooted in our mission to transform how you experience working with lawyers. At Kravets Law Group, we take a compassionate and practical approach to planning for the future. Contact us today to schedule a complimentary estate planning consultation and take the next step in safeguarding your loved one’s well-being.
Chicago Special Needs Trust Infographic
Chicago Special Needs Trust FAQ
Planning for a loved one with disabilities brings unique challenges that keep many families awake at night. You want to provide financial security without jeopardizing access to government benefits that cover essential medical care and living expenses. One wrong move could disqualify your family member from programs they depend on, yet doing nothing leaves them vulnerable after you’re gone.
What Distinguishes First-Party From Third-Party Special Needs Trusts?
First-party trusts hold assets belonging to the person with disabilities, such as personal injury settlements, inheritances received directly, or accumulated disability benefits. These self-settled trusts require Medicaid payback provisions, meaning remaining funds go to the state after the beneficiary’s death to repay medical assistance provided. Third-party trusts are funded with family members’ or others’ assets for the benefit of a person with disabilities. These don’t require Medicaid payback, and remaining assets pass to designated remainder beneficiaries. First-party trusts have age restrictions and additional requirements. At Kravets Law Group, we help families determine which type fits their situation and draft compliant documents.
How Do These Trusts Preserve Eligibility For Government Benefits?
Special needs trusts provide supplemental resources without disqualifying beneficiaries from Supplemental Security Income or Medicaid. These programs have strict asset and income limits, typically $2,000 in countable resources for SSI. Trust assets aren’t counted toward these limits when properly structured because the beneficiary doesn’t control them. Distributions must supplement, not replace, government benefits, covering items and services that public programs don’t cover. Prohibited distributions include cash given directly to the beneficiary or payments for food and shelter that could reduce SSI benefits. Our Chicago special needs trust lawyer team helps trustees make appropriate distributions that enhance the quality of life while maintaining eligibility for benefits.
What Expenses Can Trustees Pay From Special Needs Trusts?
Trustees can pay for numerous quality-of-life expenses that government benefits don’t cover. Allowable purchases include medical and dental care not covered by Medicaid, therapies, rehabilitation services, specialized equipment, education and training, transportation, including vehicle purchases, entertainment and recreation, vacations, personal care attendants beyond what benefits provide, clothing, electronics, hobbies, and professional services. Trustees should avoid direct cash distributions and must carefully handle food and shelter expenses, which can reduce SSI benefits. Documentation of all expenditures is critical. We advise trustees on making distributions that maximize the beneficiary’s well-being while complying with benefit program rules and trust terms.
Why Would Someone Choose A Pooled Trust Over A Private Trust?
Pooled trusts managed by nonprofit organizations offer advantages for smaller estates or situations where private trustees aren’t available. They provide professional management, investment expertise, and compliance oversight at lower costs than individual trusts. Beneficiaries maintain separate accounts within the pooled structure while sharing administrative expenses. These trusts accept smaller initial funding amounts than would be practical for standalone trusts. First-party pooled trusts may allow the nonprofit to retain remaining funds after the beneficiary’s death rather than repaying Medicaid, depending on state law. We help families evaluate whether pooled trusts or private arrangements better serve their loved ones’ needs based on asset levels, family circumstances, and long-term goals.
What Happens To Trust Assets When The Beneficiary Passes Away?
Disposition of remaining trust assets depends on the trust type. Third-party trusts distribute remaining funds to remainder beneficiaries named in the trust document—often siblings or other family members. First-party trusts must first repay state Medicaid agencies for medical assistance provided to the beneficiary during their lifetime. Any assets remaining after Medicaid payback go to designated beneficiaries. Pooled trusts may allow the nonprofit organization to retain a portion or all remaining funds, depending on the trust’s terms and state regulations. Trustees must file claims with Medicaid, obtain itemized accounting of benefits received, and negotiate payback amounts before final distributions. We handle trust termination procedures, Medicaid payback negotiations, and distribution of remaining assets.
If you’re planning for a family member with disabilities or managing an existing special needs trust, we’re here to help. Our team provides guidance on creating trusts that protect benefits, advising trustees on proper administration, and resolving disputes that arise. Contact us today to discuss your special needs planning concerns and discover how we can help your family achieve financial security while preserving access to vital government programs.