Wilmington Special Needs Planning Attorney – Safeguarding Futures in Delaware

If you’re a parent, grandparent, or loved one in Delaware caring for a family member with disabilities, special needs planning is essential. Without proper safeguards, even well-intentioned inheritances or assets can disqualify your loved one from critical benefits like Supplemental Security Income (SSI) and Medicaid, which provide essential medical care, housing support, and daily needs. At Estate & Elder Law Services (EAELS) in Wilmington, DE, our Certified Elder Law Attorneys (CELA) help Delaware families create customized plans that preserve eligibility while providing supplemental support for a higher quality of life.

Why Special Needs Planning Is Critical in Delaware

Delaware’s strict Medicaid and SSI rules mean direct gifts, inheritances, or unmanaged assets can trigger benefit loss, mandatory spend-downs, or state reimbursement claims. Special needs planning uses tools like special needs trusts (also called supplemental needs trusts) to hold and manage funds so they supplement—not replace—government benefits. This ensures your loved one receives extras like adaptive equipment, therapies, education, and recreation without risking core support.

Our team, as members of the Special Needs Alliance, stays current with federal and Delaware regulations to deliver compliant, compassionate plans.

Types of Special Needs Trusts We Create

We specialize in both main types, tailored to Delaware law:

• Third-Party Special Needs Trusts: Funded by assets from parents, grandparents, or others (not the beneficiary). Ideal for estate planning—inheritances pass directly to the trust via a will or beneficiary designation. No Medicaid payback required upon the beneficiary’s death; remaining assets can go to other family members or charities.
• First-Party (Self-Settled) Special Needs Trusts: Funded with the beneficiary’s own assets (e.g., personal injury settlements or inheritances received directly). Allowed under federal law (for those under 65 at creation); includes a Medicaid payback provision requiring reimbursement to Delaware for benefits paid before any remainder is distributed.

We also advise on pooled special needs trusts through Delaware CarePlan when individual trusts aren’t practical (e.g., smaller amounts or administrative needs).

What a Special Needs Trust Can (and Cannot) Pay For

A properly drafted Delaware-compliant special needs trust can cover supplemental items and services not provided by government benefits, including:

• Adaptive equipment (wheelchairs, hearing aids, assistive technology)
• Medical and dental expenses not covered elsewhere
• Therapies, rehabilitation, and specialized education/vocational training
• Computers, electronics, and communication devices
• Travel and recreation (including companion costs)
• Insurance premiums, legal fees, and quality-of-life enhancements

Trust funds generally cannot pay for basic food or shelter (e.g., rent, groceries, utilities) without careful structuring, as this could reduce SSI benefits. We guide distributions to maximize benefits while complying with rules.

Choosing a Trustee and Funding the Trust

We help select reliable trustees—often recommending professional fiduciaries for long-term stability, avoiding risks like family conflicts, incapacity, or creditor issues. Funding can come from wills, life insurance, retirement accounts, or lifetime gifts. We coordinate with your overall estate plan for seamless transfers.

Common Pitfalls We Help Delaware Families Avoid

• Informal arrangements (e.g., leaving assets to a sibling with “understandings”) that fail due to divorce, creditors, or death.
• Delaying planning until after a loved one’s passing, causing immediate benefit disqualification.
• Missing Delaware-specific nuances, like payback rules on first-party trusts or proper integration with state programs.

Ready to Protect Your Loved One’s Future?

Contact our experienced special needs planning attorney team in Wilmington, DE today for a confidential consultation.