How can I leave money to a child with a disability without disqualifying their benefits?

Leave it in a special needs trust rather than directly. Government benefits like Supplemental Security Income (SSI) and Medicaid have strict asset limits, so a direct inheritance can knock your child off assistance. A properly drafted special needs trust holds the money for their benefit while preserving eligibility, because trust assets aren't counted as the beneficiary's own.

The trust pays for extras that improve quality of life such as therapies, education, travel, and equipment, without replacing what benefits already cover. There are first-party trusts (funded with the beneficiary's own money, subject to Medicaid payback) and third-party trusts (funded by parents, no payback). Never name a disabled child directly as a beneficiary of a policy or account. Work with a special needs planning attorney to draft it correctly.