Parents of children with disabilities face a unique planning challenge. You want to provide financial security for your child, but a direct inheritance can disqualify them from government benefits they depend on.
Special needs trusts solve this problem. They let you set aside money for your child’s care without affecting eligibility for Supplemental Security Income or Medicaid. The trust pays for things government benefits don’t cover—therapy, equipment, recreation, specialized care. Your child gets financial support while keeping their benefits intact.
Without proper planning, even a modest inheritance can trigger loss of benefits. SSI has strict asset limits. Medicaid looks at countable resources. A $25,000 bequest from grandparents could disqualify your child from programs that provide housing, medical care, and monthly income.
At Kravets Law Group, Founder Daniel Kravets handles every special needs trust matter personally. He’s been practicing law since 2016 and opened the firm in 2020. We’ve drafted special needs trusts that preserved eligibility for SSI and Medicaid while securing family resources. We counsel parents on funding options and trustee responsibilities. Our Northbrook special needs trust lawyer ensures families achieve peace of mind by protecting benefits while providing financial security for loved ones with disabilities.
Why Families Choose Kravets Law Group
Ten Years Drafting Special Needs Trusts. Daniel Kravets has 10 years of experience creating trusts for families with disabled children or dependents. He understands how SSI eligibility requirements work and what triggers benefit loss. Asset limits. Income calculations. Trust distribution rules. We’ve addressed all these issues for Northbrook, IL families.
Experience with Complex Family Situations. We’ve drafted special needs trusts for families across different circumstances—young children with developmental disabilities, adult children injured in accidents, elderly parents with cognitive decline. Some trusts protect inheritances. Others shelter personal injury settlements. Each requires different structures under Illinois law.
Flat-Rate Pricing for Most Trusts. Most special needs trust documents are offered at flat-rate pricing. Transparent guidance on long-term administration costs is included. You know what you’re paying before we start.
Step-by-Step Guidance Through the Process. Daniel handles every case personally. We explain how the trust protects benefits, who should serve as trustee, how distributions work, and what happens after your child’s lifetime. You’ll leave confident in the protection you’ve created.
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“As a CPA, I work closely with professionals who support my clients’ long-term financial and legal goals—and Daniel Kravets is someone I trust without hesitation. His expertise in estate planning is outstanding, and he approaches each case with clarity, precision, and genuine care. Dan takes the time to understand individual needs and offers thoughtful, strategic guidance that makes a real impact. I’ll confidently refer my clients to him whenever estate planning needs arise. He’s a reliable, knowledgeable, and highly professional attorney.” – Joe David
Types of Special Needs Trusts We Handle in Northbrook
We represent families with disabled children or dependents who need long-term planning. Our Northbrook attorney handles all types of special needs trusts.
- Third-Party Special Needs Trusts. Funded with assets belonging to someone other than the beneficiary—typically parents or grandparents. These trusts don’t require payback to the state after the beneficiary dies, so remaining funds can pass to siblings or other family members. Most families use third-party trusts as part of their estate plan.
- First-Party Special Needs Trusts. Funded with assets belonging to the disabled individual—personal injury settlements, inheritances received directly, back pay from disability benefits. Under Illinois special needs trust law, these trusts must include payback provisions to reimburse Medicaid after the beneficiary’s death.
- Pooled Special Needs Trusts. Managed by nonprofit organizations that pool assets from multiple beneficiaries for investment purposes while maintaining separate accounts for each person. Useful when trust funds are modest and don’t meet minimum requirements of corporate trustees. Must be established before age 65 to avoid transfer penalties.
- Trust Funding and Coordination. Creating the trust is just the start. We coordinate with your overall estate plan to ensure assets flow properly into the trust. Proper trust funding makes the difference between protection and benefit loss.
- Trust Administration Guidance. After the trust is established, trustees need ongoing guidance about permissible distributions. We advise trustees on what purchases preserve benefits and what expenditures could trigger problems.
- Integration with Overall Estate Planning. Special needs trusts work best as part of comprehensive planning. We coordinate with your wills, life insurance, retirement accounts, and other trusts to ensure everything directs properly.
Illinois Special Needs Trust Requirements
Creating a valid special needs trust in Illinois requires compliance with both state and federal law. Miss one requirement and your child could lose benefits.
Under Illinois law, a discretionary trust for someone with a disability that substantially impairs their ability to provide for their own care shall not be liable to pay or reimburse the state for financial aid or services to the individual—as long as it’s properly structured. The trust must give the trustee complete discretion over distributions. No “ascertainable standard” language. No entitlement to trust funds.
Federal law governs benefit eligibility. Supplemental Security Income has strict resource limits—currently $2,000 for individuals. Medicaid looks at both income and resources. Assets held in a properly drafted special needs trust don’t count against these limits, but direct inheritances do.
First-party trusts funded with the beneficiary’s own assets must comply with specific federal requirements. The trust must be established before age 65. It must be irrevocable. It must include language requiring reimbursement to state Medicaid programs after the beneficiary’s death for medical assistance provided during their lifetime.
Third-party trusts have more flexibility. They can be established at any age. They don’t require state payback. Remaining assets can pass to siblings, other family members, or charities you designate.
Trustees must understand permissible distributions. Trust funds can pay for supplemental items—recreation, travel, therapy not covered by Medicaid, specialized equipment, companion care, entertainment. Funds generally shouldn’t pay for food or shelter in ways that reduce SSI benefits, though some exceptions exist.
The Illinois Department of Human Services administers Medicaid programs and reviews trust language for compliance. Working with experienced legal counsel ensures your trust meets all requirements.
Contact Kravets Law Group
If you have a child or loved one with disabilities and want to protect their financial future, contact our Northbrook special needs trust lawyer today. We offer free initial consultations.
Daniel Kravets personally handles every case from our Chicago office, serving Northbrook and surrounding Cook County communities. Reach out through our website to schedule.
During your consultation, we’ll discuss your child’s disability, current benefits, family situation, and planning goals. We’ll explain which type of trust makes sense and how it protects benefits while providing additional support. You’ll leave understanding the process, costs, and timeline.
Most trust documents are completed within 3-4 weeks.
We stay available to answer questions as they arise.
Don’t wait. Proper planning now ensures your child has financial security without losing the benefits they need.
Types Of Special Needs Trust Cases We Handle
At Kravets Law Group, we help families create and manage trusts designed specifically for individuals with disabilities. Our practice covers first-party trusts, third-party trusts, pooled trusts, and trust administration matters. We work closely with families to develop solutions that enhance quality of life while protecting access to the government programs that many people with disabilities depend on for healthcare, housing assistance, and basic support.
Third-Party Special Needs Trust Creation: We draft trusts funded by parents, grandparents, or other family members who want to leave assets for someone with disabilities. These trusts allow you to provide supplemental resources for your loved one without disqualifying them from means-tested benefits. Our drafting process includes careful attention to distribution standards, trustee powers, and provisions that comply with federal and state benefit rules while giving trustees flexibility to meet the beneficiary’s changing needs.
First-Party Self-Settled Trust Establishment: When someone with disabilities receives a settlement, inheritance, or other assets in their own name, we create first-party trusts to hold those funds without losing benefit eligibility. These trusts must meet specific legal requirements including Medicaid payback provisions and age restrictions. We prepare documents that satisfy all regulatory requirements while maximizing the trust’s usefulness for the beneficiary during their lifetime.
Pooled Trust Enrollments and Management: For situations where a private trust isn’t practical or cost-effective, we help families join pooled trusts managed by nonprofit organizations. These arrangements allow individuals with disabilities to benefit from professional trust administration while maintaining lower costs through shared management. We assist with enrollment paperwork, fund transfers, and ongoing coordination with pooled trust administrators to meet beneficiary needs.
Trust Funding and Asset Protection Planning: Properly funding a special needs trust requires careful planning to avoid unintended benefit disqualification. We guide families through the transfer of life insurance policies, real estate interests, investment accounts, and other assets into these trusts. Our planning also addresses how to structure inheritances, personal injury settlements, and disability benefits to preserve eligibility while providing financial resources.
Benefit Preservation and Compliance Review: Special needs trusts must be administered in ways that don’t trigger benefit disqualification, which means understanding detailed rules about what expenses are permissible. We review trust distributions to confirm they won’t be counted as income or resources by government agencies. Our guidance helps trustees avoid common mistakes like making direct cash payments to beneficiaries or paying for food and shelter in ways that reduce SSI benefits.
Trustee Guidance and Administration Support: Serving as trustee of a special needs trust carries unique responsibilities beyond typical trust management. We counsel trustees on making appropriate distributions, maintaining required records, coordinating with benefit administrators, and handling annual reporting requirements. This support includes advice on paying for therapies, equipment, education, recreation, and other quality-of-life expenses that supplement rather than replace public benefits.
Trust Modifications for Changing Circumstances: Changes in benefit programs, tax laws, or the beneficiary’s situation sometimes require trust amendments. We prepare modifications to update administrative provisions, adjust distribution standards, change successor trustees, or add provisions addressing new planning opportunities. When original trust language creates problems, we petition courts for reformation or modification to better serve the beneficiary’s needs.
Litigation and Benefit Appeals: Disputes can arise when government agencies incorrectly claim that trust distributions or assets should disqualify someone from benefits. We represent families in administrative appeals and litigation to protect benefit eligibility. This work includes challenging improper benefit denials, advocating for correct application of trust law, and fighting to restore benefits that have been wrongly terminated.
Trust Termination and Payback Issues: When a beneficiary with a first-party trust passes away, the trust must satisfy Medicaid payback requirements before distributing remaining assets. We handle trust termination procedures including filing claims with state Medicaid agencies, negotiating payback amounts, and distributing any remaining funds to remainder beneficiaries. Our experience with these processes helps families resolve these matters efficiently while complying with all legal obligations.
Guardianship Coordination and Planning: Special needs planning often intersects with guardianship proceedings for individuals who cannot make their own legal or financial decisions. We coordinate trust planning with guardianship arrangements to create comprehensive protection. This includes drafting trusts that work effectively with court-appointed guardians and addressing how decisions about trust distributions should be made when guardianship is involved.
Inter-Family Dispute Resolution: Disagreements sometimes emerge among family members about how a special needs trust should be managed or who should serve as trustee. We represent parties in these disputes, working toward resolutions that prioritize the beneficiary’s wellbeing. When litigation becomes necessary, we advocate forcefully for our clients while keeping focus on what serves the person with disabilities best.
Whether you’re planning for a child’s future, received an inheritance that needs protection, or face challenges administering an existing trust, our Northbrook special needs trust lawyer team is ready to help. We provide thoughtful guidance on creating and managing these important planning tools while keeping your loved one’s needs at the center of every decision. Contact us today to discuss your special needs planning situation and explore how we can assist your family in achieving long-term security and peace of mind.