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Estate planning is one of a family’ s most crucial considerations for a loved one with a disability. By Matthew G. Ricks

But estate planning in this case goes beyond financial matters. It also means naming a guardian or trustee who will make decisions on behalf of the individual. This can be an extremely emotional undertaking, since the parents or guardians are relying on such people to look after and ensure that the financial, medical and personal needs of the disabled client are managed with the client’ s best interest in mind.

One key item in this process is a letter of intent, which can provide caregivers and trustees with clear guidance about the disabled person’ s needs, preferences and long-term aspirations.

Families often overlook important steps when they name a guardian, one of which is to have an open and honest conversation with this designated caretaker ahead of time to make sure they understand the important duties they’ re taking on. It’ s not enough to assume they’ ll take the role just because you want them to. They might have their own personal future plans that won’ t leave them available to take on the task at hand.

Another facet of estate planning is about protecting benefits. Without an estate plan or with an incomplete one, individuals risk losing access to essential government assistance programs like Supplemental Security Income( SSI), Social Security Disability Insurance( SSDI) and Medicaid.

These programs provide critical support for healthcare, housing and daily living needs.

ABLE accounts are a powerful tool here( they’ re named after the“ Achieving a Better Life Experience Act.”) These allow individuals with disabilities to save and spend money tax-free on qualified disability expenses. The ABLE account is a cost-effective solution that can be established quickly; anyone, including the account owner, family, friends or even trusts, can contribute to it. Unlike conventional savings accounts, ABLE accounts help individuals maintain financial independence while also preserving access to their benefits programs— because the first $ 100,000 in the account doesn’ t affect someone’ s SSI benefits.

Another excellent option is the special needs trust, which lets families set aside funds for their loved one’ s additional needs, such as therapies, education, social activities and personal care. Meanwhile, it doesn’ t jeopardize eligibility for government benefits since its assets aren’ t counted as personal resources. The client can continue receiving assistance while enjoying trust benefits.

By taking such proactive steps, families can develop a comprehensive plan to not only help these loved ones lead rich, fulfilling lives but also to protect their financial resources. Estate planning is not a legal formality. It’ s an act of love that secures peace of mind. MATTHEW G. RICKS, CFP is the founder of Haystack Financial Planning.

26 | FINANCIAL ADVISOR MAGAZINE | MAY 2025 WWW. FA-MAG. COM