Decision-making authority does not pass automatically to a sibling or relative when parents die, and any inheritance left directly to a child with a disability can end Supplemental Security Income (SSI) and Medical Assistance eligibility. Someone has to petition the court for guardianship, and the money has to land somewhere that benefit programs will not count.
Kreisher Marshall & Associates, LLC builds elder law and special needs plans that answer both questions in advance for Centre County families.
Legal Guardianship and Decision-Making
Who has legal authority over a child with a disability after the parents die depends largely on the child’s age. Most families will encounter one of the following three arrangements:
- Minor Children: A will may name a preferred guardian for a child under 18, subject to review and appointment.
- Adult Children: Adult guardianship requires a separate court proceeding, including a petition, supporting medical evidence, and a hearing, because the law presumes an adult has legal capacity unless a court determines otherwise.
- Alternatives: Powers of attorney, representative payee arrangements, and supported decision-making agreements can replace full guardianship when the person retains some capacity.
Parents of adult children often assume their authority continues after age 18. Centre County petitions go before the Orphans’ Court Division at the courthouse in Bellefonte.
The Risk of Intestacy
Dying without a will can create uncertainty; proper estate planning helps families feel more secure about their child’s future and benefits. Under 20 Pa.C.S. § 2103, children take equal portions outright, and an outright share of even a few thousand dollars pushes a beneficiary past the $2,000 resource limit for SSI.
Pennsylvania’s intestacy statute contains no exception for a person with a disability, so the inheritance vests directly in that child’s name and requires the family to obtain a court-supervised guardianship of the estate to spend it. Repairing that afterward costs considerably more than planning around it.
The Special Needs Trust (SNT) Solution
A special needs trust (SNT) holds an inheritance in a separate legal entity, so that the money never counts as the beneficiary’s own resource. A trustee spends it on items that public benefits do not cover, including therapies, education, travel, and personal electronics.
Trusts funded with a parent’s assets carry no Medical Assistance payback when the beneficiary dies. Whatever remains can pass to siblings or a charity, which is why parents route assets through a trust rather than leaving them outright.
Social Security Survivor Benefits
An adult child with a disability may qualify for benefits on a deceased parent’s earnings record, often at a higher monthly amount than Supplemental Security Income pays. The disability generally must have begun before age 22, and the adult child must be unmarried.
Moving to survivor benefits can also change health coverage. Medicare may become available after the applicable waiting period, while Medical Assistance coverage may change.
Residential Care and Housing
Housing is often addressed late, but State College families have several options, including group homes, supported living, and in-home services. A trust can cover shelter costs, though those payments may reduce SSI benefits.
Sit Down With Our State College Team and Map the Handoff
Families who plan the transition themselves get to choose the guardian, the trustee, and the shape of daily life. Kreisher Marshall & Associates, LLC brings more than 50 years of practice and Board-Certified Elder Law Attorney credentials from the National Elder Law Foundation to families across Centre County. Call (814) 458-6294 or contact our office online to begin.