If you have a child with special needs, special needs planning is of primary importance. Putting the necessary effort into securing your child’s financial future now can make a big difference in how well they are protected as they age. And in the process, you can obtain the peace of mind you’re looking for. Turn to our experienced State College, PA, special needs planning attorneys at Kreisher Marshall & Associates, LLC, for the skilled legal guidance you need.
The Importance of Maintaining Government Services
As your special needs child grows into adulthood, the government services they receive, including Medicaid and SSI, are likely to be of critical importance. To remain eligible, your child’s countable assets must be under the current threshold set by the government. Simply leaving money to your child in an inheritance or failing to adequately structure the money they earn or otherwise receive leaves them vulnerable to lost benefits.
Protecting Your Child’s Assets
There are several important means of protecting the assets your child will need for supplemental expenses in their future without affecting their eligibility for public benefits.
The Special Needs Trust
Special needs trusts (SNTs) break down into two groups. A first-party SNT is funded by the individual’s personal assets, such as those acquired through inheritance, savings, or legal settlement. Third-party SNTs, on the other hand, are funded by someone else, such as a parent. This means that, if you fund an SNT on behalf of your child, it will be a third-party SNT.
The assets included will not affect their eligibility for benefits. While first-party SNTs must include a Medicaid payback provision, third-party SNTs do not.
The Pennsylvania ABLE Account
PA ABLE accounts give individuals with disabilities greater control over their finances without putting their government benefits at risk. Account holders can contribute up to $19,000 per year, which is a limit tied to the federal annual gift tax exclusion and subject to periodic adjustment. Balances up to $100,000 do not affect SSI eligibility, and there is no balance cap that affects Medicaid eligibility. Funds can be used for a wide range of qualified disability expenses, including housing, education, transportation, and specialized therapies.
As of January 2026, Pennsylvania expanded eligibility to individuals whose disability began before age 46, a significant increase from the previous age-26 cutoff. This expansion means more Pennsylvanians than ever can take advantage of this planning tool.
Work Incentives through SSI and SSDI
Both SSI and SSDI incorporate rules for work incentives that allow beneficiaries to work without losing their benefits. Wages saved into a PA ABLE account, for example, are sheltered from SSI resource counting up to the annual contribution limit. Balancing these rules alongside your child’s trust and benefit structure requires careful coordination, and a skilled special needs planning attorney can help you make the most of every available tool.
It’s Time to Consult with Our Experienced State College Special Needs Lawyers
Our trusted State College, PA, special needs planning attorneys at Kreisher Marshall & Associates, LLC, appreciate the gravity of your concerns as they relate to continuing to provide for your child with special needs into the future. In response, we will leave no stone unturned in our dedicated efforts to help. For more information about what we can do for you, please don’t delay contacting us online or giving our firm a call at 814-458-6294 today.