By Eva M. Luchini, JD, Law office of Eva M. Luchini, PLLC

If you are the parent or grandparent of a child with disabilities, think twice before opening a custodial account for that child. I’m not saying don’t set aside money for the child. I’m just saying don’t set it aside in a custodial account.

Funds in custodial account for a child belong to that child. When that child turns 18, they get those funds. And if that child has disabilities and applies for Supplemental Security Income, they may be financially ineligible because of that custodial account.

If you already have a custodial account for your minor child with some money in it, then you may want to spend it on the child before they turn 18 and apply for SSI. What are the legally appropriate things you can spend it for? Well, you can find the answer with a quick google search or you can consult legal counsel. The guiding idea is that money in a child’s custodial account can only be used for that child’s benefit. And that does not mean the everyday living expenses that you as a parent are already responsible for providing.

If your child is 18 and about to apply for SSI, then consider helping him or her (1) spend the money down (2) transfer up to $19K into an ABLE account and (3) transfer the rest into a Trust 2 account with the Washington State Endowment Trust Fund.

If your child is going to be under Conservatorship, remember that ABLE accounts will be part of the conservator estate of which anything over $3,000 will have to be bonded or in a blocked account. Best to avoid ABLE Accounts if there is a conservatorship.

What I Do:

Special Needs Planning

My passion is helping individuals and their families in the disability community put together the right legal documents to protect access to benefits. I am part of this community and I want to see every child and adult who experiences life with a disability thrive.

Alternatives to Guardianship

For parents who are considering guardianship over their adult child with a disability, I am happy to share the alternative of supported decision making and draw up the right legal documents. You've worked so hard to build independence; let's continue on that path.

Estate Planning

I walk you through putting together your Will or Trust, Power of Attorney, and Healthcare Directive so that you understand what these legal documents do for you and your family.

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