Estate Planning When You Have a Child With Special Needs in Maryland

 Posted on October 07, 2025 in Estate Planning

Planning for the future is an essential part of raising a child with special needs. Parents want to make sure their child will be cared for, even when they are no longer able to help. A good estate plan can protect your child’s financial security and access to benefits. With help from our experienced Potomac, MD estate planning lawyer, you can build a plan that meets your child’s needs and gives you peace of mind.

Why an Estate Plan Is So Important for Parents of Children With Special Needs

Government programs like Supplemental Security Income (SSI) and Medicaid provide critical support for many people with disabilities. However, these programs have strict limits on income and assets. If your child inherits money or property directly, they could lose access to these benefits.

That is where estate planning becomes essential. With a carefully designed plan, you can protect your child’s financial security while preserving their eligibility for public assistance. One common tool is a special needs trust, which allows you to leave assets for your child’s benefit without affecting SSI or Medicaid eligibility.

Estate planning also ensures that someone you trust will manage your child’s care and finances if you are unable to do so. Under Maryland Estates and Trusts Code §13-705, the court must appoint a guardian if no one is named. This process can cause unnecessary delays and confusion, but creating a plan in advance helps you stay in control and gives your child lasting protection.

What Is a Special Needs Trust?

A special needs trust is a legal tool that holds money or property for a person with disabilities. The trust is managed by someone called a trustee, who uses the funds to pay for your child’s needs. This can include medical care, therapy, education, or personal items.

The trust helps your child because the money in it does not count toward benefit limits. Under Maryland Estates and Trusts Code §14.5-1002, it must be structured to add to, not replace, government benefits. This means the funds can be used for things that improve your child’s quality of life. That might include funds for recreation, education, or special care. It still allows them to qualify for Medicaid or SSI.

Types of Special Needs Trusts Available in Maryland

The three main types of special needs trusts in Maryland are:

• First-party trusts: These trusts are funded with the child’s own money, such as an inheritance or injury settlement. Any funds left after the child’s death must be used to repay Medicaid.

• Third-party trusts: These trusts are funded by parents, grandparents, or other relatives. They do not require Medicaid repayment. Any remaining money can go to other family members after the child’s death.

• Pooled trusts: These trusts are managed by nonprofit organizations that combine resources from many families. This option works well for families that do not have someone available to serve as a trustee.

Schedule a Free Consultation With a Silver Spring, MD Estate Planning Attorney

Planning for a child with special needs is one of the most meaningful steps you can take to protect their future. With more than 35 years of experience in estate planning, attorney Susan Eleff provides families with trusted legal guidance rooted in legal knowledge and compassion. She will work closely with you to design a plan that fits your unique circumstances. Her goal is to ensure lasting protection for your loved ones.

If you are ready to start planning for your child’s care and financial security, contact The Eleff Law Group today at 301-857-1990 to schedule a free consultation with a knowledgeable Potomac, MD estate planning lawyer.