Special Needs Planning in Montgomery County

Special Needs Trust Structures in Pennsylvania

A special needs trust, also called a supplemental needs trust, holds assets for a person with a disability without those assets counting toward the resource limits that govern SSI and Medicaid eligibility. Pennsylvania practice recognizes three structures, and choosing the right one depends on where the funding comes from.

• Third-party special needs trust: Funded by parents, grandparents, or others using assets that never belonged to the beneficiary. These trusts aren’t subject to Medicaid payback at the beneficiary’s death, making them a preferred tool for family estate planning.
• First-party (self-funded) special needs trust: Funded with the beneficiary’s own assets, such as a personal injury settlement or an inheritance received directly. Remaining funds at the beneficiary’s death must reimburse Medicaid for benefits paid during their lifetime.
• Pooled trust: Administered by a nonprofit organization that combines funds from multiple beneficiaries into a single investment pool while maintaining separate individual accounts. This option can be practical when the amount to be set aside is modest.

Guardianship Through Montgomery County’s Orphans’ Court

When a child with special needs turns 18, parents no longer automatically retain legal decision-making authority, and that transition often catches families off guard. If a young adult lacks capacity to manage medical, financial, or personal decisions, the family may need to seek guardianship through the Orphans’ Court Division of the Montgomery County Court of Common Pleas.

Pennsylvania courts treat guardianship as a last resort. A guardian is appointed only when no less restrictive alternative, such as a power of attorney, is workable given the individual’s circumstances. The court may appoint a guardian of the person, a guardian of the estate, or both, depending on what the incapacitated individual actually needs. Planning ahead, before a crisis forces the decision, can give families more options.

ABLE Accounts as Part of a Broader Plan

ABLE accounts are tax-advantaged savings accounts that let a person with a disability save funds directly without losing SSI or Medicaid eligibility. The account holder can use those funds for qualified disability expenses including education, housing, transportation, and health care. SSI counts resources above $2,000 against eligibility, but ABLE account balances up to a set threshold are excluded from that calculation.

ABLE accounts and special needs trusts aren’t competing tools. They serve different roles within the same plan. A trust typically holds larger long-term assets managed by a trustee, while an ABLE account gives the beneficiary more direct access for day-to-day qualified expenses. Understanding how the two interact is central to building a plan that can hold up over time.

Why Montgomery County, PA Families Work with Testa & Pagnanelli, LLC

Our attorneys bring over 75 years of combined legal experience to each matter we handle. We don’t apply a generic template to special needs planning. Every family’s situation involves a different disability, a different family structure, and different assets, so the plan we build reflects those specific circumstances.

Families already working with us on a divorce, custody dispute, or support matter don’t have to bring in a separate firm to address the planning side. We can handle both sets of needs, which can mean less coordination burden for you and a more coherent legal strategy overall.

Schedule Your Consultation with Our Montgomery County Team

Special needs planning decisions carry long-term consequences for your loved one’s care and benefit eligibility, and the right structure matters from the start. Testa & Pagnanelli, LLC offers a complimentary initial consultation so you can discuss your family’s situation before making any financial commitment.

Call (610) 365-4733 to speak with our team and take the first step toward a plan that supports what matters most.