Special Needs Planning Attorney Serving the DMV
Thienel Law builds special needs trusts that protect a loved one's SSI and Medicaid across Maryland, D.C., and Virginia, with tax counsel built in. Free consultation.
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Special needs planning is the legal work of providing for a person with a disability without costing them the government benefits they depend on. Thienel Law builds special needs trusts and coordinated estate plans for families across Maryland, Washington, D.C., and Virginia.
If someone you love has a disability, leaving them money the ordinary way can backfire. Many disability benefits, including Supplemental Security Income and Medicaid, are needs based. A gift or inheritance paid directly to the person can push them over the resource limit and interrupt the support they rely on. Special needs planning solves that problem. A properly drafted special needs trust holds funds for your loved one’s benefit while keeping those funds from counting against eligibility. It suits parents planning for a child with a disability, families whose inheritance will reach a disabled relative, and people who have received a settlement. Because Stephen Thienel is licensed across all three DMV jurisdictions and holds an LL.M. in Taxation, one attorney can weigh the benefits, estate, and tax sides together.
What is a special needs trust, and who needs one?
A special needs trust, sometimes called a supplemental needs trust, holds money for a person with a disability so that the money supplements public benefits instead of replacing them. The trustee, not the beneficiary, controls the funds and pays for extras that improve daily life, such as therapies, equipment, education, travel, and personal care that benefits do not reach.
There are three main forms, and the right one depends on whose money funds it. A third-party trust is funded by someone other than the beneficiary, usually a parent or grandparent, and does not have to repay Medicaid. A first-party trust holds the beneficiary’s own money and must, under federal rules that let a trust hold funds without ending benefits, repay the state Medicaid program from anything left at death. A pooled trust, run by a nonprofit that manages many separate accounts together, is a further option. Anyone providing for a person who receives, or may receive, needs based benefits should plan before money changes hands.
What happens if you leave money directly to a loved one with a disability?
Supplemental Security Income and Medicaid are needs based. To qualify, a person cannot hold more than a small amount of countable resources. Money paid straight to them, whether through a will, a life insurance policy, or an informal gift, counts against that limit.
The result is harsh. A well-meant inheritance can suspend the monthly benefit check and the Medicaid coverage that pays for care, until the money is spent down. Some families disinherit a child with a disability to avoid this, which leaves that child with nothing set aside for a lifetime.
A special needs trust is the planned alternative. The funds belong to the trust rather than the person, so benefits continue while the trust pays for what public benefits do not cover.
What does special needs planning include?
Thienel Law builds the plan around your family, the person you are providing for, and where their money will come from. There is no single form that fits everyone.
- A third-party special needs trust, funded by a parent or relative, that carries no Medicaid repayment obligation.
- A first-party special needs trust for a person’s own money, such as a settlement or an inheritance received directly, drafted to meet the federal conditions.
- Guidance on a pooled trust run by a nonprofit, an option that can fit smaller amounts or families without a natural trustee.
- Help choosing a trustee and clear instructions on what the trust may pay for without reducing benefits.
- Coordination with your will, your beneficiary designations, and a letter of intent, so nothing lands in the beneficiary’s name by accident.
- Where it helps, an ABLE account used alongside the trust, plus a read on the tax side because that work is handled in-house.
What is it like to work with Steve on a special needs plan?
Every engagement begins with a free 30-minute consultation. It is a fit conversation for people who are ready to hire an attorney. You describe your family and the person you want to protect, and you and Steve decide together whether working with him makes sense. It is not a strategy session, and no plan is drafted inside that half hour.
From there you work directly with Stephen Thienel. The practice runs online, with secure video meetings, shared document folders, and electronic signatures, so you can build and sign the plan from wherever you are in the DMV.
How does special needs planning differ across Maryland, D.C., and Virginia?
The trust rules are largely federal, so the core structure holds across the region. What changes is the benefits program underneath the trust. Medicaid is run by the Maryland Department of Health as Medical Assistance, by the Department of Health Care Finance in the District, and by the Department of Medical Assistance Services, branded Cardinal Care, in Virginia. Each program is the one repaid from a first-party or pooled trust after the beneficiary dies, and each sets its own eligibility figures and waiver programs.
Each jurisdiction also offers a tax-advantaged ABLE savings account for eligible people with disabilities, which can hold a limited amount of savings without disrupting benefits and often works well next to a trust. Because Stephen is admitted in all three, one attorney can build a plan that fits the program your loved one relies on and adjust it if the family moves across DMV lines.
Where does special needs planning fit in your plan?
Special needs planning rarely stands alone. It works alongside the documents that pass your property, name decision makers, and settle your affairs.
What clients say about working with Steve
I have worked with Steve Thienel for more than 20 years now and the experience has been amazing. Steve and his team are very thorough, they review all sides of a situation, and are very measured in how they approach a solution. They are 100% client focused and a pleasure to work with!
Throughout years, Steve has been my go to guy for business, real estate, and legal work. Steve works fast and is highly reliable. I would recommend Steve to anyone.
Received expert advice including options when applicable. Filings were timely and I was kept informed each step of the way. First class service!!!
I have been receiving services from Mr. Thienel for over 15 years. I have found his legal services to be of exceptionally high value and quality. His services are always timely, professional and thorough!
Reviews are published as given. Thienel Law does not offer compensation for reviews.
Frequently asked questions
Will an inheritance disqualify my child from SSI or Medicaid?
It can, if the money is paid directly to your child. Because SSI and Medicaid are needs based, funds in your child's own name can push them over the resource limit and interrupt benefits until the money is spent down. Leaving the inheritance to a special needs trust instead keeps benefits in place.
What is the difference between a first-party and a third-party special needs trust?
The difference is whose money funds the trust. A first-party trust holds the beneficiary's own money, such as a settlement or a direct inheritance, and federal law requires it to repay the state Medicaid program at the beneficiary's death. A third-party trust is funded by someone else, usually a parent or grandparent, and carries no repayment requirement.
Does a special needs trust have to repay Medicaid?
Only some do. A first-party trust, funded with the beneficiary's own assets, and a pooled trust must repay the state Medicaid program from what remains at death. A third-party trust funded by a parent or other person does not, which is why planning ahead with family money is often the stronger route.
Who can serve as trustee of a special needs trust?
You can name a trusted family member, a professional trustee, or both, and a pooled trust supplies a nonprofit trustee. The key is choosing someone who will follow the rules on what the trust may pay for, since an improper distribution can reduce benefits.
Do I still need a special needs trust if I already have an ABLE account?
Often yes. An ABLE account is useful but can hold only a limited amount of savings and is typically owned by the person with the disability. A special needs trust has no such cap and lets a parent or relative set aside as much as they wish. The two tools frequently work together.
Can one attorney handle a special needs plan across Maryland, D.C., and Virginia?
Yes. Stephen Thienel is licensed in Maryland, Washington, D.C., and Virginia, so one attorney can build a plan that fits the benefits program your loved one relies on and adjust it if your family moves across the region. The tax side is handled in-house through his LL.M. in Taxation.
Ready to protect a loved one's benefits and their future?
If someone you love depends on Supplemental Security Income or Medicaid, the right plan lets you provide for them without putting that support at risk. If you are ready to hire an attorney to build it, schedule a free 30-minute consultation and let us decide together whether Thienel Law is the right fit.
- Tell Steve about your matter
- Pick a time that works