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Looking Further Ahead · 08
Money that helps, without taking benefits away.
Money paid straight to a child who relies on SSI or Medicaid can quietly cost them their coverage. A special needs trust holds those funds instead. We handle the family law side and coordinate with the estate counsel who build it.
First call is a conversation, not a commitment.
The Short Answer
A special needs trust holds money for a person with disabilities without that money counting against needs-based benefits like SSI and Medicaid. In a divorce, child support, property awards, life insurance, and inheritances can all be routed through it.
How It Fits A Divorce
The problem, and the fix.
A special needs trust solves a specific danger that comes up again and again in a divorce involving a disabled child.
1
The problem
Money paid directly to a person on SSI or Medicaid can push them over the asset limit and cost them coverage they cannot easily replace.
2
The fix
A properly drafted special needs trust receives the money instead, so it can be used for the person's benefit without counting against them.
3
What flows through it
Child support, equitable distribution payments, life insurance proceeds, and inheritances can all be directed into the trust.
4
Our role
We handle the family law side and coordinate with the trusts and estates counsel who draft and administer the trust itself.
An Important Note
Special needs trusts are drafted and administered by trusts and estates counsel, and they interact with federal benefit rules. This page is general information about how a trust fits into a divorce, not specific legal, tax, or financial advice. We coordinate closely with the estate and benefits attorneys who create the trust for your family.
Benefit rules and trust requirements change. Confirm the current rules with qualified estate and benefits counsel before acting.
The Essentials
What a trust does, and who builds it.
01
What It Protects
Eligibility for needs-based benefits like SSI and Medicaid, by keeping assets out of the dependent's own name.
02
What Flows Through It
Child support, property awards, life insurance proceeds, and inheritances, all directed to the trust instead of the child.
03
Who Drafts It
Trusts and estates counsel draft and administer it. We coordinate the family law pieces so they line up.
04
Why Timing Matters
The trust should exist before money moves, so nothing lands directly on the benefits-eligible child first.
Worth Knowing
What protects eligibility, and what quietly destroys it.
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It works when
- The trust is set up before any money changes hands
- Child support and property awards are directed into the trust
- Life insurance beneficiary designations point to the trust, not the child
- Family members route any inheritance through the trust too
- Family law and estate counsel coordinate from the start
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It backfires when
- Money is paid directly to a benefits-eligible child
- A life insurance policy still names the child as beneficiary
- A well-meaning relative leaves an inheritance straight to the child
- The trust is created only after eligibility is already disrupted
- No one coordinates the divorce terms with the trust
Corrie Sirkin, Esq.Founding Partner · AAML Contributor
From Our Attorney
"The trust is the container. Our job is to make sure the divorce pours into it, not around it."
We do not draft the trust. That is the work of trusts and estates counsel. What we do is make sure the divorce order, the support, the property award, the life insurance terms, all point money into the trust rather than directly to your child.
When the family law and estate pieces are coordinated from the start, the trust does what it is supposed to do. When they are handled separately, eligibility can be lost before anyone notices. So we work alongside your estate attorney from day one.
Talk With CorrieMore On Special Needs
Every part of a special-needs case.
01
Tailored Parenting Plans
02
Custody With Special Factors
03
Above-Guideline Support
04
Equitable Distribution
05
Working With Specialists
06
Detailed Parenting Agreements
07
Support Past Age 18
08
Special Needs Trusts
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Guardianship Planning
10
Government Benefits
11
Life Insurance Planning
12
Long-Term Co-Parenting
Questions Families Ask
Special needs trusts and divorce.
A few of the questions we hear most on a first call. If yours is different, we are happy to answer it directly.
Have a specific question?Call 571.260.0999 or send us a message.
What is a special needs trust?
A special needs trust is a legal arrangement that holds assets for the benefit of a person with disabilities without those assets counting against them for needs-based government benefits like Supplemental Security Income or Medicaid. Money intended for the person flows into the trust rather than directly to them, which preserves their eligibility for the programs they rely on.
What can be routed through it in a divorce?
In a divorce involving a child with disabilities, several sources of money can be directed into the trust instead of paid directly to the child: child support, equitable distribution payments, life insurance proceeds, and inheritances from parents or relatives. Structuring these correctly keeps the funds available for the child's benefit without disqualifying them from benefits.
Do you draft the trust?
Special needs trusts are drafted and administered by trusts and estates counsel. We handle the family law side, the divorce, custody, and support, and coordinate closely with the estate and benefits attorneys who create the trust, so that what the court orders and what the trust receives line up. This page is general information, not specific legal or financial advice for your situation.
Why does timing matter?
The trust needs to be in place before money changes hands. If child support, a property award, life insurance, or an inheritance lands directly with a benefits-eligible child first, it can disrupt eligibility before the trust can protect it. Setting up the trust early, ideally well before the child turns 18, keeps everything flowing to the right place from the start.
When You Are Ready
Make the money flow the right way.
If a special needs trust is part of your child's future, we will coordinate the divorce terms with your estate counsel so support and property reach your child without costing them benefits.