Speak with a Honolulu Special Needs Trust Attorney Today

If your child has a disability, planning for their future is one of the most important decisions you will ever make. A properly structured Special Needs Trust in Honolulu allows you to protect your child financially while preserving their eligibility for critical government benefits like Medicaid and SSI.

Without the right planning, even a modest inheritance could disqualify your child from essential benefits. Our experienced Hawaii estate planning attorneys ensure your trust is designed correctly—so your child is protected for life.

What Is a Special Needs Trust?

A Special Needs Trust (Supplemental Needs Trust) is a legal tool that holds assets for a disabled child without those assets being counted as their own. This allows your child to continue receiving government assistance while still benefiting from additional financial support.

✔ Assets in the trust do NOT belong to the child
✔ Maintains eligibility for government benefits
✔ Provides lifetime financial security and care

What Can a Special Needs Trust Pay For?

A properly drafted trust is designed to supplement—not replace—government benefits. This is critical.

Your trust can cover:

Medical and dental expenses
Annual checkups and specialized care
Transportation and vehicle costs
Medical equipment and assistive devices
Education and training programs
Insurance coverage
Rehabilitation services
Vacations and quality-of-life experiences
In-home care and home health aides

⚠️ Important: A Special Needs Trust cannot pay for basic food or housing (room and board) without risking benefit eligibility. This is why working with an experienced Honolulu estate planning attorney is essential.

Why Proper Drafting Matters

Not all trusts are created equal. One mistake can jeopardize your child’s benefits.

Our firm specializes in Hawaii Special Needs Trust planning, ensuring:

Full compliance with federal and Hawaii laws
Protection of SSI and Medicaid eligibility
Clear trustee instructions and flexibility
Long-term asset protection

How a Special Needs Trust Works

The trust is typically irrevocable for maximum protection
It is established by parents or a third party
A trusted trustee manages and distributes funds
The trustee has full discretion to act in your child’s best interest

When your child passes, any remaining assets can be distributed to siblings or other family members, keeping your wealth within your family.

Funding Your Special Needs Trust

There are several smart ways to fund your trust:

Life insurance policies
Structured settlements
Investment and financial accounts
A Survivorship (Second-to-Die) Life Insurance Policy

A survivorship policy covers both parents and pays out after the second passing—providing a fully funded trust when your child needs it most.

Built-In Flexibility for the Future

If your child becomes capable of managing their own finances later in life, your trustee can:

Evaluate competency
Transition assets appropriately
Provide greater financial independence

This ensures your plan adapts as your child’s needs evolve.