Louisiana Special Needs Trusts for Adult Children with Disabilities

For families with a child who has a disability, one of the most important questions is how to provide long-term financial support without jeopardizing eligibility for government benefits. A properly structured special needs trust is often the answer.

A special needs trust is a legal tool that allows assets to be set aside for the benefit of an individual with a disability while preserving access to needs-based benefits such as Supplemental Security Income (SSI) and Medicaid. These benefits are often essential for medical care, housing support, and daily living assistance, but they come with strict asset limits. Even a modest inheritance can unintentionally disqualify a child from receiving those benefits.

A special needs trust avoids that problem by placing assets under the control of a trustee, rather than the individual beneficiary. Because the beneficiary does not directly own the funds, those assets are generally not counted for purposes of benefit eligibility.

In most cases, parents establish a third-party special needs trust as part of their estate plan. This trust can be funded during the parents’ lifetime or upon their death through a will, trust, or life insurance proceeds. The trustee is then responsible for managing the funds and making distributions for the benefit of the child.

Importantly, the trust is designed to supplement, not replace, government benefits. Funds can be used for expenses that improve the child’s quality of life, such as education, therapy, transportation, recreation, and other non-covered needs. At the same time, distributions must be handled carefully to avoid interfering with eligibility for public assistance.

Choosing the right trustee is a critical decision. The trustee must understand both the family’s goals and the rules governing public benefits. In many cases, families select a trusted individual, a professional fiduciary, or a combination of both.

Without proper planning, leaving assets outright to a child with a disability can create unintended consequences. A special needs trust provides a structured, protective solution that ensures financial support is available while maintaining access to essential benefits.



For families navigating these issues, thoughtful estate planning is not just helpful—it is essential to protecting the long-term well-being of their child.

Johnston Burkhardt is an attorney at Sternberg, Naccari & White, LLC, with experience in estate planning, interdictions, and planning for individuals with disabilities. He regularly assists families in structuring special needs trusts to protect long-term financial security while preserving eligibility for essential government benefits. To learn more about special needs planning or to schedule a consultation, contact Johnston at (504) 324-2141 or johnston@snw.law.