Knoxville Special Needs Planning Attorney

I opened the Family Law Practice of David A. Montgomery, in Knoxville, Tennessee, because I am passionate about protecting and preserving families in East Tennessee. One of the most important areas of my practice is assisting families and individuals who are seeking to protect the health and financial welfare of loved ones who are unable to care for themselves. This includes minors who need a guardian appointed, incapacitated adults who need a conservator appointed, and special needs family members who need special planning.

Nearly every family has someone with special needs. In your family, maybe it’s a minor or adult child with autism or another mental or physical disability. Maybe it’s an elderly parent with dementia or other disability, or a niece or nephew who can’t care for themselves.

Caring for family members with special needs can be stressful and challenging. It can stretch a family’s physical, emotional and financial capabilities to the maximum. I am attorney David Montgomery, and I understand your situation, because I have several extended family members with special needs.

Special Needs Planning

In working with families with someone with special needs, my number one goal is to maximize the person’s quality of life while protecting their assets. Achieving this goal requires a detailed knowledge of both state and federal government benefit programs for disabled persons, Tennessee’s laws on trusts and estates, and state and county requirements for conservatorships and guardianships. At the Family Law Practice of David A. Montgomery, I have worked hard to obtain this knowledge, and I continue to work hard to keep up with the constant changes in these laws and requirements.

In planning for a family member with special needs, there are many different options to consider, including:

• Special needs trusts: Provide financial security while helping ensure access to Medicaid, SSI and other benefits; funds can cover expenses like medical care, therapy and education.
• ABLE accounts: Allow families to save for disability-related expenses in a tax-advantaged account without compromising eligibility for public benefits.
• Powers of attorney (financial and health care): Enable trusted individuals to handle financial and healthcare decisions on behalf of a family member with special needs.
• Estate planning through wills and revocable living trusts: Provide a framework for long-term care, including how assets will be managed and distributed.
• Representative payee status for government benefits: Designate someone to oversee government benefit payments, such as Social Security, to better ensure funds are used appropriately.

What Is A Special Needs Trust?

It is a legal arrangement that manages assets for someone with disabilities while preserving their eligibility for government programs like Medicaid and Supplemental Security Income (SSI). The trust serves as a safeguard, making sure the individual’s resources are used to enhance their life without disqualifying them from necessary public benefits.

Funds in a special needs trust can be used for many expenses, including medical treatments, education, housing modifications and recreation. Unlike direct inheritances, which could jeopardize benefits eligibility, a special needs trust is structured to complement government assistance by covering additional needs not provided by public programs.

Types Of Special Needs Trusts

Choosing the appropriate special needs trust depends on the source of the funds and specific family goals:

• First-party special needs trusts: These are funded with the disabled individual’s own assets, such as a personal injury settlement or inheritance. While these trusts allow the individual to maintain access to benefits, any remaining funds are typically required to reimburse Medicaid upon the individual’s death.
• Third-party special needs trusts: These are established and funded by family or other parties. A sound addition to your estate plan, they are not subject to Medicaid reimbursement and offer asset distribution flexibility.

Both trusts are valuable tools for securing financial stability while maintaining government eligibility for government programs. Families should carefully evaluate their options to make sure the chosen trust aligns with their loved one’s long-term needs and goals.

Contact Information

If you would like to explore options for planning the future of your special needs family member, including setting up a special needs trust, ABLE account or other planning tools, I can be reached at 865-643-8452 or by email. I provide an initial consultation to help you understand your options and determine the best path forward for your loved one’s well-being.