Special Needs Trust Attorney

Caring for a loved one with disabilities is a lifelong commitment—emotionally, financially, and legally. As a parent, sibling, or guardian, you’ve likely asked yourself: “What happens when I’m no longer here?”

That question drives many Colorado families to seek help with special needs planning. A Special Needs Trust (SNT) is the cornerstone of that plan. It lets you leave money, property, or support for someone with a disability—without jeopardizing their access to public benefits like Medicaid, SSI, or housing assistance.

At Legacy Law Group Colorado, we specialize in creating comprehensive, compassionate, and Colorado-compliant special needs plans that:

• Protect long-term Medicaid and SSI eligibility
• Provide financial security and a better quality of life
• Integrate with guardianship, powers of attorney, and wills
• Empower trustees with clear direction and compliance tools
• Ease the burden on siblings and caregivers left behind

This isn’t just legal work. It’s peace of mind—for your family’s future.

What Is a Special Needs Trust?

A Special Needs Trust is a unique legal entity that holds assets for the benefit of someone with a disability—without making them ineligible for means-tested public benefits. These trusts are carefully drafted to supplement (not replace) programs like:

• Medicaid
• Supplemental Security Income (SSI)
• Section 8 housing
• SNAP/food assistance

The trust is managed by a trustee, who uses the funds to pay for:

• Private caregivers, therapies, or out-of-pocket medical expenses
• Educational, recreational, or vocational programs
• Adaptive equipment or transportation
• Personal needs, travel, hobbies, and social enrichment

Colorado has strict rules on income, assets, and disbursement. Without proper planning, an inheritance or gift—even with the best intentions—can instantly disqualify a disabled loved one from these programs. A special needs trust helps you avoid this disaster entirely.

Types of Special Needs Trusts We Draft

Not every family is the same. That’s why we offer multiple trust types and help you select the one that fits your needs and goals.

Third-Party Special Needs Trust (Funded by Family)

This trust is set up and funded by parents, grandparents, or other loved ones—often through an estate plan, life insurance policy, or lifetime gifts. The beneficiary never owns the funds, so there’s no Medicaid payback when they pass.

Perfect for:

• Parents creating a plan while their child is young
• Families funding a trust through wills or insurance
• Avoiding probate and controlling who inherits next

First-Party Special Needs Trust (Funded with Beneficiary’s Money)

If your loved one is receiving an inheritance, personal injury settlement, or back pay from benefits, this type of trust is required. It must follow strict federal and Colorado rules and usually includes a Medicaid payback provision.

Perfect for:

• Individuals receiving a sudden lump sum or gift
• People already on Medicaid or SSI
• Avoiding immediate disqualification from benefits

Pooled Trust

Managed by a nonprofit that pools assets from multiple beneficiaries for investment purposes. Each person’s funds are used only for them. Useful when the trust amount is small or when there is no suitable trustee available.

Perfect for:

• Modest trust sizes
• No family trustee option
• Professional trust administration

We’ll walk you through pros, cons, and compliance issues—and make sure every piece works with your broader estate and care plan.

Who Should Consider a Special Needs Trust?

A special needs trust is essential if:

• You have a child or grandchild with developmental or cognitive disabilities
• You care for an adult sibling or parent who needs ongoing support
• Your loved one receives Medicaid, SSI, or other income-sensitive programs
• You plan to leave an inheritance or receive a legal settlement
• You want peace of mind knowing your loved one will be protected long after you’re gone

Our clients include parents, guardians, siblings, and caregivers—all looking to build a future that’s secure, respectful, and legally sound.

Real Family Example: Preserving Benefits with Smart Planning

A family in Boulder received a large inheritance when the grandfather passed away. Their daughter, who has Down syndrome and was receiving Medicaid, SSI, and services through Colorado’s developmental disability system, was named in the will.

Without intervention, she would have lost her Medicaid and her group home placement.

We stepped in, created a third-party special needs trust, and updated the estate plan to funnel future inheritance directly into the trust. Today, she receives all the same services and also enjoys enhanced care, outings, and programs funded by the trust—with zero benefit disruption.

Special Needs Planning Includes More Than a Trust

An SNT is vital, but it’s only one piece of a full plan. We also help:

• Draft letters of intent to explain daily routines, caregiver guidance, and personal wishes
• Coordinate with your estate plan to ensure wills, trusts, and POAs are aligned
• Educate extended family on how to gift or leave assets safely
• Identify trustee options, professional or personal, with fiduciary guidance
• Prevent future guardianship or plan for conservatorship if necessary

We don’t just create a trust—we build an entire plan of support and dignity that lasts for generations.

Why Choose Legacy Law Group Colorado?

We understand the emotional weight and legal complexity of caring for someone with lifelong needs. That’s why families across Colorado trust us with this deeply personal work.

We offer:

• Local expertise in Colorado Medicaid and disability law
• Real-life experience working with families just like yours
• Compassionate planning that combines strategy with heart
• Clear, accessible explanations of every legal step
• Ongoing support for updates, reviews, and trustee transitions

You’re not just hiring a lawyer—you’re gaining a long-term partner in your loved one’s care.

Our Process: Protecting Your Family, Step-by-Step

1. Discovery Call – Learn about your loved one’s benefits, care needs, and financial situation.
2. Planning Session – Explore which trust type fits best, and how it integrates with your existing estate plan.
3. Legal Drafting – We prepare and customize your trust, trustee guidance, and supporting documents.
4. Signing & Funding – We help you sign, notarize, and fund the trust properly.
5. Ongoing Guidance – Stay connected for updates, future changes, and trustee transitions.