For parents of adult children with disabilities, future planning involves more than preparing a will. It requires considering who can assist with decision-making, how financial support can be provided without jeopardizing public benefits, and what arrangements will ensure continuity of care when parents can no longer provide support.
Understanding Decision-Making for Adult Children
Parents are the natural guardians of their minor child but do not retain legal authority to make decisions for an adult child once the child turns 18. If the adult child has legal capacity, they can sign financial and health care powers of attorney granting a parent or other trusted individual legal authority to assist the child with decisions. While Ohio has not codified supported decision-making into law yet, powers of attorney and other types of supported decision-making have long been accepted as less-restrictive alternatives to guardianship.
Guardianship is not necessary for every adult with a disability. However, when an adult child cannot care for themselves or their finances, it may be necessary to apply for the appointment of a guardian through the formal probate court process. Families should evaluate the child’s individual needs and abilities with the assistance of the child’s physician or psychologist rather than assume that a diagnosis alone determines the level of assistance needed.
Parents should also consider what would happen if they became incapacitated or died. Parents may nominate successor guardians of their minor or adult child if the parent is unable to serve. Identifying and incorporating trusted individuals who can help coordinate care, communicate with service providers, and oversee important decisions before illness or death can make a difficult transition easier.
Protecting Financial Security and Public Benefits
Many adults with disabilities rely on means-tested public benefits, including Supplemental Security Income (SSI) and Medicaid. These programs have financial eligibility requirements, so directly receiving an inheritance, gift, or other assets can negatively impact financial eligibility.
One planning option is a third-party discretionary trust, which allows parents to set aside assets for their child while giving a trustee discretion over distributions. A properly drafted and administered trust can supplement public benefits without jeopardizing eligibility. Parents may also consider appointing a trust protector, if appropriate, to provide an additional layer of oversight or limited authority under the trust’s terms. A trust can be established during the parent’s lifetime or through an estate plan to take effect at death.
Trust funds may help pay for expenses that improve quality of life, such as recreation, technology, transportation, and other needs not adequately covered by public benefits. Parents should coordinate the trust with their wills, life insurance, retirement accounts, and other beneficiary designations to help ensure that assets pass into the intended arrangement rather than directly to the child.
A STABLE Account may also be useful for eligible individuals. These accounts allow people with qualifying disabilities to save and pay for qualified disability-related expenses while preserving certain public benefits. Beginning in 2026, eligibility was expanded to include individuals whose qualifying disability began before age 46. A STABLE Account may complement a third-party discretionary trust, depending on the individual’s circumstances and terms of the trust.
Planning for Housing and Future Care
Parents should consider where their adult child will live and what support will be needed when they are no longer available. Options may include remaining in the family home, living independently with assistance, or accessing supported living or residential services. Ohio families should contact their county board of developmental disabilities to explore available services, eligibility requirements, and potential funding, including Medicaid home and community-based services waivers. Because eligibility, funding, and availability vary, early planning is important.
If parents intend for their child to remain in the family home, they should consider how housing expenses, maintenance, and ownership will be managed over time. Leaving a home outright to an adult child may create complications, particularly if the child cannot independently manage the property.
It is also important to choose future caregivers and financial decision-makers carefully. The best person to provide day-to-day support may not be the best person to manage investments. Naming appropriate successors and documenting the child’s routines, preferences, medical needs, and important contacts can help preserve continuity of care.
When a Parent Needs Long-Term Care
Parents should also consider how their own long-term care needs could affect their adult child’s future. If a parent needs nursing home or other long-term care services, planning may help preserve resources for the child while also addressing the parent’s eligibility.
Ohio Medicaid rules provide limited exceptions to the asset transfer penalty, including certain transfers of a home to a qualifying child with a disability and certain transfers to trusts established for a disabled individual’s sole benefit. The requirements are specific, and not every transfer qualifies. Because long-term-care Medicaid generally applies a 60-month look-back period to certain asset transfers, parents should seek advice before transferring property or making gifts. A durable financial power of attorney for the parent that includes appropriate authority for Medicaid and long-term-care planning may also be important if a parent later becomes unable to manage their own affairs and engage in this type of planning.
Start Planning Before a Crisis
The most effective plan coordinates decision-making authority, estate planning, public-benefit eligibility, housing, and future care. Parents should review their arrangements as their child’s needs change and identify trusted people who can carry the plan forward. Early planning can provide greater financial security and help ensure that the adult child continues to receive appropriate support when family circumstances change.
Planning for an adult child with a disability is ultimately about more than money or legal documents. It is about creating a sustainable framework that protects the child’s interests, supports independence where possible, and helps ensure that trusted people and resources will be available for years to come.
Planning for your adult child’s future can feel overwhelming, but you do not have to navigate it alone. The attorneys at Hickman Lowder can help you understand your options and develop a plan that reflects your child’s needs and your family’s goals. Contact us to schedule a consultation and take the next step toward protecting your child’s future.