How Grandparents Can Plan for a Grandchild With Special Needs

Grandparents often play an important role in a grandchild’s life. Beyond providing love, encouragement, and family traditions, many grandparents also want to leave a meaningful legacy. For families raising a child with disabilities, that legacy deserves thoughtful planning.

While many articles focus on parents, grandparents can also make a lasting difference through careful estate planning. Whether you live in Essex Junction, Burlington, elsewhere in Chittenden County, or another part of Vermont, understanding your options today may help provide greater peace of mind for your family tomorrow.

Why Grandparents Should Be Part of Special Needs Planning

Many grandparents naturally want to leave something behind for each grandchild. However, leaving money directly to a grandchild with special needs may have unintended consequences.

Many individuals with disabilities depend on programs such as Supplemental Security Income or Medicaid. These programs often have financial eligibility requirements. A direct inheritance could affect eligibility for certain benefits depending on the person’s situation.

That is why Special Needs Planning should involve the entire family whenever possible. Parents, grandparents, and trusted advisors can work together to create a plan that supports the child’s future while helping reduce unnecessary risks.

Every Family’s Goals Are Different

Some grandparents want to help pay for education, therapy, adaptive equipment, transportation, recreation, or future housing.

Others simply want to know their gift will improve their grandchild’s life in meaningful ways.

An estate planning attorney can explain available planning options based on your family’s unique circumstances.

Thoughtful Ways Grandparents Can Leave a Lasting Legacy

Supporting a grandchild with disabilities does not always mean leaving a direct inheritance.

Depending on your goals, your estate plan may include several planning strategies.

Review Your Will and Beneficiary Designations

Many grandparents create a will years before grandchildren are born or before a child receives a disability diagnosis.

Reviewing your estate plan allows you to confirm that your wishes still reflect your family’s needs. This includes reviewing retirement accounts, life insurance policies, payable-on-death accounts, and other beneficiary designations.

These assets often transfer outside of a will, making regular updates an important part of estate planning.

Coordinate With the Parents

Communication can help prevent future complications.

Parents may already have a long-term financial or legal plan in place for their child. By discussing your wishes with them, everyone can work toward the same goals.

This coordination may help avoid conflicting plans and ensure future gifts are structured appropriately.

Consider a Third-Party Special Needs Trust

Grandparents who want to leave assets for a grandchild with disabilities often consider a third-party Special NeedsTrust. This type of trust is funded with assets that belong to someone other than the beneficiary, such as a parent or grandparent.

Instead of leaving an inheritance directly to the grandchild, the assets are held in the trust and managed by a trustee according to the trust’s terms. Depending on the family’s circumstances, this approach may help provide financial support while helping preserve eligibility for certain government benefits.

Other types of Special Needs Trusts exist, including first-party trusts that hold assets belonging to the individual with disabilities. These trusts follow different legal requirements and are used in different situations. An estate planning attorney can explain which approach may be appropriate based on your family’s goals.

Estate Planning Is About More Than Money

Grandparents often think first about financial gifts, but estate planning can also communicate family values, provide instructions, and create continuity for future generations.

Share Your Wishes Clearly

Your estate planning documents can explain how you hope your gift will benefit your grandchild.

While legal documents govern how assets are managed, many grandparents also leave a separate letter expressing personal hopes, family history, and words of encouragement.

These thoughtful additions often become treasured family keepsakes.

Plan for Future Changes

A grandchild’s needs may change over time.

Medical treatments, educational opportunities, living arrangements, and available public programs can all evolve.

Reviewing your estate plan every few years, or after significant life events, helps ensure it continues to reflect your family’s goals.

Why Vermont Families Benefit From Early Planning

Families across Vermont often assume estate planning is only necessary for wealthy individuals.

In reality, planning is about making informed decisions before unexpected events occur.

Whether your estate is modest or substantial, creating a thoughtful plan can help reduce uncertainty and provide greater confidence for future generations.

If you have a grandchild with special needs, planning early gives your family more opportunities to coordinate decisions and build a strategy that reflects everyone’s wishes.

You can also learn more about disability-related benefits through the Social Security Administration.

Frequently Asked Questions

Can grandparents leave money directly to a grandchild with special needs?

They can, but doing so may affect eligibility for certain public benefits depending on the individual’s financial situation. Before making gifts or naming beneficiaries, it is often wise to discuss your plans with an estate planning attorney.

Should grandparents have their estate plan reviewed after a grandchild is diagnosed with a disability?

Yes. A diagnosis may change how gifts and inheritances should be structured. Updating your estate plan can help ensure your wishes continue to support your family’s long-term goals.

Is special needs planning only for wealthy families?

No. Families with estates of many different sizes can benefit from thoughtful planning. The goal is to create a plan that reflects your wishes while helping protect the future of a loved one with disabilities.

Help Protect Your Grandchild’s Future

Grandparents can play an important role in supporting a grandchild with special needs. A thoughtful estate plan may help provide financial support while reducing the risk of affecting important public benefits.

Unsworth LaPlante, PLLC helps grandparents and families in Essex Junction, Burlington, Chittenden County, and across Vermont understand their special needs planning options.

To discuss how your estate plan can support your grandchild’s future, contact Unsworth LaPlante, PLLC, to schedule a consultation.