Special Needs Trust Attorney in Houston, TX

Usually not. A special needs trust only works if its terms match federal and Texas benefit rules, and small wording mistakes can make trust assets count against SSI or Medicaid. A form also can't tell you whether you need a first-party or third-party trust, how to coordinate it with an ABLE account, or how to point your will and life insurance at it. Because the stakes are your loved one's benefits, this is one document worth having drafted by an attorney.

The difference is whose money goes into the trust. A third-party trust holds money from family, such as an inheritance or life insurance, and anything left when your loved one dies can pass to other family members. A first-party trust holds the person's own assets, such as a personal injury settlement or a direct inheritance, and it must repay Texas Medicaid from what's left at death. A first-party trust must also be set up before the beneficiary turns 65.

It can, if it's left to them directly. SSI and Medicaid have a $2,000 resource limit for an individual, so an outright inheritance can end benefits until the money is spent down. Leaving the inheritance to a third-party special needs trust instead keeps it from counting. That means your will, trust, life insurance, and retirement beneficiary designations should all name the trust, not your loved one directly. Relatives who plan to leave gifts should do the same.

A special needs trust pays for things that improve your loved one's quality of life beyond what benefits cover. Common examples include therapies, education, medical equipment, a phone or computer, transportation, recreation, and travel. Payments usually go directly to the provider, not to your loved one in cash. Some payments, such as rent, can reduce SSI benefits, so the trustee should understand the rules before paying for housing. Francisca drafts clear distribution guidance so your trustee can act with confidence.

Name someone organized, trustworthy, and willing to learn the benefit rules, plus at least one backup. Many families choose a sibling or close relative who knows your loved one well. Others pair a family member with a professional trustee who handles the paperwork and tax filings. The trustee doesn't have to be the same person who provides day-to-day care. Francisca helps you weigh the options and drafts trustee powers that fit your family.

What happens next turns on the type of trust. With a third-party trust, whatever is left passes to the people you named, such as siblings or grandchildren, and Texas Medicaid has no claim to it. With a first-party trust, Texas Medicaid must be repaid for the care it provided before anything else is distributed. That difference is one reason families usually fund a third-party trust with their own estate planning, and use a first-party trust only for the person's own money.

Many Texas families use both. A Texas ABLE account lets a person with a disability save and spend money for qualified expenses without losing SSI or Medicaid, and the account owner can manage it directly. Contributions each year are capped, and money left at death may be subject to Medicaid payback. A special needs trust has no annual cap and suits larger amounts, inheritances, and long-term management by a trustee. Francisca can explain how the two work together for your family.

Yes. The trust works best when it's in place before anyone dies or becomes incapacitated, so an inheritance or life insurance payout goes straight into it. Planning early also prepares for age 18, when SSI eligibility starts to depend on your child's own income and resources rather than yours. Parents often set up a third-party trust as part of their own estate plan and name a guardian for their minor child at the same time.

No. The firm does not handle guardianship court cases, and it refers that work to trusted colleagues. Guardianship isn't always the only option, though. Texas law also recognizes less restrictive tools, such as powers of attorney and supported decision-making agreements, for adults who can make some decisions with help. Francisca can talk through how a special needs trust, your own estate plan, and guardian nominations fit together.