If you care for a loved one with special needs, you’ve likely thought about what their future will look like when you’re no longer there to provide daily support. Planning ahead can feel overwhelming, but there are legal tools available to help protect your loved one’s care and financial stability. One of the most effective tools is a special needs trust.

This guide explains how a special needs trust works, why it may be the right choice for your family, and how our estate law team at VW Law helps families in Naperville and Chicago, Illinois take this important step.

What Is a Special Needs Trust?

A special needs trust is a legal arrangement that allows you to set aside funds for a person with disabilities without impacting their eligibility for important government benefits such as Supplemental Security Income (SSI) or Medicaid. Instead of giving assets directly to your loved one through a will or inheritance — which can unintentionally disqualify them from these programs — a special needs trust ensures they have additional resources while still maintaining access to the support they need.

This type of trust is often created for family members with:

• Developmental or intellectual disabilities
• Lifelong medical conditions
• Dementia or cognitive impairments
• Physical disabilities that limit independence

Why Illinois Families Choose Special Needs Trusts

Families in Naperville, Chicago, and throughout Illinois often turn to special needs trusts because they provide peace of mind and long-term security. Some of the most important benefits include:

• Preserving eligibility for government benefits
  Assets in a special needs trust are not counted against the resource limits for programs like SSI or Medicaid.
• Providing financial support
  The trust can be used for expenses not covered by government benefits, such as education, home modifications, transportation, or recreation.
• Appointing a trusted manager
  A trustee is designated to oversee the trust and ensure funds are used appropriately for your loved one’s benefit.
• Protecting against financial exploitation
  By placing funds in a trust, you help safeguard your loved one from potential misuse of their assets.

Types of Special Needs Trusts in Illinois

There are several forms of special needs trusts, and choosing the right one depends on your situation:

• First-Party Special Needs Trusts
  Funded with assets belonging to the person with disabilities, such as a personal injury settlement or inheritance.
• Third-Party Special Needs Trusts
  Funded with assets from family members, often created by parents or grandparents.
• Pooled Trusts
  Managed by nonprofit organizations, where multiple beneficiaries’ funds are combined for investment but kept separate for distribution.

An attorney can help you determine which type best fits your loved one’s needs.

Steps to Creating a Special Needs Trust

Planning a trust requires careful attention to detail. Here’s an overview of the process:

1. Consult with an estate lawyer
   Every family’s situation is unique, so legal guidance ensures the trust meets state and federal requirements.
2. Choose a trustee
   Select someone you trust to manage funds responsibly. This may be a family member, a professional trustee, or an institution.
3. Fund the trust
   Assets may include cash, property, or proceeds from life insurance policies.
4. Outline terms of use
   Define how funds can be spent to benefit your loved one.
5. Review regularly
   Laws and your family’s circumstances may change over time, so periodic updates are essential.

How VW Law Helps Naperville & Chicago Families

At VW Law, we understand the responsibility that comes with caring for a loved one who has special needs. Our estate law team works closely with families in Naperville and Chicago to create special needs trusts tailored to their goals. We’ll help you:

• Understand how a trust impacts government benefits
• Choose the right type of trust for your situation
• Draft and fund the trust in compliance with Illinois law
• Plan for the long-term care and protection of your loved one



Protect Your Loved One’s Future Today

Don’t leave your loved one’s future to chance. With a special needs trust, you can provide financial security while ensuring they continue to receive the support they rely on.