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.
