Special Needs Planning in Birmingham, AL

Trust & Estate Planning That Protects Benefits Eligibility

Families raising or supporting a loved one with a disability face a planning challenge that standard estate documents don’t address on their own: how to leave money or assets for that person without cutting off the government benefits they depend on. At Brad J. Latta Law Office, our estate planning work already covers trusts, revocable living trusts, and trust administration for Birmingham, Alabama, families. Special needs planning builds on that foundation, structuring what you leave behind so it supplements your loved one’s care rather than disqualifying them from it.

Call (205) 236-7134 or reach out through the site’s contact form to schedule a free initial consultation. We can walk through your family’s situation and can explain your options.

Why a Direct Inheritance Can Cause Real Harm

Supplemental Security Income (SSI) and Medicaid are means-tested programs, meaning eligibility depends on keeping countable assets below a threshold. For SSI, that limit is generally $2,000. An inheritance, legal settlement, or even a well-intentioned gift paid directly to a person with a disability can push them over that line and trigger a loss of benefits until the money is spent down.

Some families rely on an informal promise: a sibling agrees to receive a larger share of the estate and look after the person with special needs. That arrangement is fragile. Divorce, illness, creditor claims, or a change in circumstances for the promising relative can leave your loved one without the support you intended. A properly drafted trust can reduce that uncertainty.

Special Needs Trust Options Under Alabama Law

A special needs trust holds assets for a person with a disability without those assets counting as available resources for SSI or Medicaid eligibility. The funds are designed to pay for supplemental needs: education, recreation, therapy, transportation, and other expenses that public benefits don’t cover. There are three main trust structures to consider:

• Third-party special needs trust: Funded with assets belonging to a parent, grandparent, or other family member. This is the most common structure, often created within a will or living trust so that any inheritance passes into the trust rather than directly to your loved one.
• First-party special needs trust: Funded with assets already belonging to the person with a disability, such as a personal injury settlement or an inheritance they received before a trust was in place. Medicaid payback provisions apply at the beneficiary’s death.
• Pooled special needs trust: Managed by a nonprofit organization on behalf of multiple beneficiaries, each with a separate sub-account. The Alabama Family Trust is a nonprofit pooled trust created by the Alabama Legislature that accepts both first-party and third-party funds and can be a practical option for smaller funding amounts.

Working With Brad J. Latta on Special Needs Planning

Because Brad J. Latta Law Office handles both family law and estate planning under one practice, families don’t need to coordinate between separate firms when their situation involves custody, guardianship, adoption, and trust planning at the same time. Founding attorney Brad J. Latta works directly with each client rather than routing matters to rotating staff, so the decisions you make reflect your family’s specific circumstances and goals.

Every family’s situation is different. The right trust structure, funding approach, and coordination with existing documents depend on your loved one’s disability, age, benefit status, and your own estate. We don’t apply a one-size-fits-all template. Call (205) 236-7134 to schedule your free consultation and start building a plan that supports your goals.