Rowe & Walton PC

Special Needs Trust Planning: Protect Your Child's Utah Benefits

Rowe & Walton PC

Special Needs Trust Planning: Protect Your Child's Utah Benefits

At Rowe & Walton PC, we often say that every family has a unique story, but for parents of children with special needs, that story often carries a weight of quiet concern: “What happens when I’m no longer there to be their advocate?” In Bountiful and across the Wasatch Front, we have spent decades helping families turn that concern into a concrete roadmap.

As attorney Robyn Walton often writes in her “Prescription for a Healthy Estate Plan” series, a standard “off-the-shelf” Will is rarely a healthy choice for a family with a disabled loved one. To ensure your child’s quality of life and protect their eligibility for essential benefits, you must avoid these five common pitfalls.

1. Leaving Your Child’s Future to Utah’s “Intestacy Laws

If you pass away without a valid estate plan, the state of Utah essentially writes a Will for you—a process called “Intestacy”. Under these rules, assets are typically divided among your children. While this sounds fair, it is often a disaster for a child with special needs. If they inherit more than $2,000 directly, they can be immediately disqualified from Supplemental Security Income (SSI) and Medicaid. These benefits are the “bare bones of their support system, and losing them can mean a sudden loss of medical care and housing assistance.

2. The “Informal Sibling Trust Mistake

Many well-meaning parents leave a larger inheritance to a non-disabled sibling with the “verbal understanding that they will use the money for their disabled brother or sister. This is a dangerous gamble. There is no legally enforceable way to ensure that a sibling uses the funds as intended. If that sibling gets divorced, faces a lawsuit, or passes away unexpectedly, the money meant for your disabled child could be seized by creditors or ex-spouses, leaving your vulnerable loved one with nothing.

3. Using Generic Trust Language Instead of “Conforming Terms

A “Living Trust is a great tool, but it isn’t inherently a Special Needs Trust (SNT). To protect government aid, your trust must use specific “conforming language that aligns with Utah disability laws. This language must state that the funds are for supplemental needs—things that go beyond basic food and shelter, such as specialized dental care, travel, or therapy—rather than replacing the public benefits themselves. Without this precise phrasing, the state may count the trust’s assets against your child’s eligibility.

4. Ignoring the New ABLE Account Synergy

A common oversight is failing to coordinate an SNT with a Utah ABLE (529A) account. For 2025, these accounts allow individuals to save up to $19,000 annually without affecting SSI or Medicaid. A significant update coming in 2026 will also expand eligibility to those whose disability began before age 46. At Rowe & Walton PC, we help families “pair these tools so a trustee can fund an ABLE account, giving the beneficiary more daily autonomy for “qualified disability expenses while keeping the bulk of the inheritance safe in a trust. You can learn more about eligibility and tax benefits at the official ABLE Utah website.

5. Falling Into the “Age of Majority Trap

In Utah, your child becomes a legal adult at 18, regardless of their disability. Without a Guardianship or Conservatorship—or at the very least, a robust Power of Attorney—you could be legally barred from making medical or financial decisions for your child the moment they turn 18. We recommend starting these conversations early to ensure there is never a “gap in your authority to protect them.

Your Prescription for Peace of Mind

At Rowe & Walton PC, we believe in “Personal Care… Professional Results”. We don’t just hand you a form; we sit down with you to design a plan as unique as your child.

Don’t let a lack of planning jeopardize the life you’ve built for your loved one. Contact our Bountiful office today at 801-298-0640 for a free consultation. Let’s make sure your child’s future is protected, today and always.

At Rowe & Walton PC, we often say that every family has a unique story, but for parents of children with special needs, that story often carries a weight of quiet concern: “What happens when I’m no longer there to be their advocate?” In Bountiful and across the Wasatch Front, we have spent decades helping families turn that concern into a concrete roadmap.

As attorney Robyn Walton often writes in her “Prescription for a Healthy Estate Plan” series, a standard “off-the-shelf” Will is rarely a healthy choice for a family with a disabled loved one. To ensure your child’s quality of life and protect their eligibility for essential benefits, you must avoid these five common pitfalls.

1. Leaving Your Child’s Future to Utah’s “Intestacy Laws

If you pass away without a valid estate plan, the state of Utah essentially writes a Will for you—a process called “Intestacy”. Under these rules, assets are typically divided among your children. While this sounds fair, it is often a disaster for a child with special needs. If they inherit more than $2,000 directly, they can be immediately disqualified from Supplemental Security Income (SSI) and Medicaid. These benefits are the “bare bones of their support system, and losing them can mean a sudden loss of medical care and housing assistance.

2. The “Informal Sibling Trust Mistake

Many well-meaning parents leave a larger inheritance to a non-disabled sibling with the “verbal understanding that they will use the money for their disabled brother or sister. This is a dangerous gamble. There is no legally enforceable way to ensure that a sibling uses the funds as intended. If that sibling gets divorced, faces a lawsuit, or passes away unexpectedly, the money meant for your disabled child could be seized by creditors or ex-spouses, leaving your vulnerable loved one with nothing.

3. Using Generic Trust Language Instead of “Conforming Terms

A “Living Trust is a great tool, but it isn’t inherently a Special Needs Trust (SNT). To protect government aid, your trust must use specific “conforming language that aligns with Utah disability laws. This language must state that the funds are for supplemental needs—things that go beyond basic food and shelter, such as specialized dental care, travel, or therapy—rather than replacing the public benefits themselves. Without this precise phrasing, the state may count the trust’s assets against your child’s eligibility.

4. Ignoring the New ABLE Account Synergy

A common oversight is failing to coordinate an SNT with a Utah ABLE (529A) account. For 2025, these accounts allow individuals to save up to $19,000 annually without affecting SSI or Medicaid. A significant update coming in 2026 will also expand eligibility to those whose disability began before age 46. At Rowe & Walton PC, we help families “pair these tools so a trustee can fund an ABLE account, giving the beneficiary more daily autonomy for “qualified disability expenses while keeping the bulk of the inheritance safe in a trust. You can learn more about eligibility and tax benefits at the official ABLE Utah website.

5. Falling Into the “Age of Majority Trap

In Utah, your child becomes a legal adult at 18, regardless of their disability. Without a Guardianship or Conservatorship—or at the very least, a robust Power of Attorney—you could be legally barred from making medical or financial decisions for your child the moment they turn 18. We recommend starting these conversations early to ensure there is never a “gap in your authority to protect them.

Your Prescription for Peace of Mind

At Rowe & Walton PC, we believe in “Personal Care… Professional Results”. We don’t just hand you a form; we sit down with you to design a plan as unique as your child.

Don’t let a lack of planning jeopardize the life you’ve built for your loved one. Contact our Bountiful office today at 801-298-0640 for a free consultation. Let’s make sure your child’s future is protected, today and always.