Does Your Estate Plan Protect Love Ones with Disabilities?

Estate planning for business owners often focuses on succession, taxes, and fairness among heirs. But when a family member has disabilities, the process can become more complex.

Parents or guardians of children with disabilities often want to provide long-term financial support. However, leaving assets directly to these children can unintentionally disqualify them from government programs like Supplemental Security Income (SSI) and Medicaid, which have strict asset limits, usually around $2,000.1  For business owners, failing to plan can lead to unequal inheritances, family disputes, or financial instability.

Benefits of a Special Needs Trust

One strategy to plan ahead includes A Special Needs Trust (SNT). This can help by allowing families to:

• Set aside assets and ensure they are managed by a trustee according to a guardian’s wishes.
• Supplement government benefits for care, quality-of-life expenses, and long-term needs without affecting eligibility.
• Balance inheritances among children involved in the business, those who aren’t, and those needing lifelong support.

Life insurance can be an efficient way to fund an SNT. In addition, a Last Survivor policy for a child with disabilities can provide liquidity when needed, equalize inheritances, and ensure the trust is adequately funded without disrupting your business.

Talk to your Federated®  marketing representative for a referral to a member of Federated’s network of independent attorneys to learn more.

1. Social Security. Supplemental Security Income (SSI) Resources. https://www.ssa.gov/ssi/text-resources-ussi.htm. Accessed May 26, 2026.

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This article is for general information and risk prevention only and should not be considered an offer of insurance or legal, financial, tax, or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all losses. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. This information is current as of its publication date and is subject to change. Some of the services referenced herein are provided by third parties wholly independent of Federated. Federated provides access to these services with the understanding that neither Federated nor its employees provide legal or other expert advice. All products and services not available in all states. Qualified counsel should be sought with questions specific to your circumstances. All rights reserved.

Published Date: June 16, 2026

HR Question of the Month

Summer Office Parties

Question

Since our work slows down during the summer, we would like to host a couple of office parties for our employees—maybe one for the Fourth of July and maybe another one just for fun. We want to show our employees that we appreciate all their hard work. What are some general considerations we should be aware of? We are planning to serve alcohol.

Answer

Office parties are a great way for employers to show appreciation for their employees and boost morale. That said, employees must still behave appropriately; an employer should not tolerate behavior at a party that would not be allowed at work. Employers should ensure that employees understand the expectations for conduct at such events.

If alcohol will be served, there are potential risks an employer should consider. Allowing employees to drive after consuming alcohol might create liability exposure if an employer knew or should have known that an employee was unfit to drive and allowed them to do so anyway and an accident ensues, causing damage, injury or worse. For workers’ compensation purposes, consuming alcohol at a company function might be considered within the scope of employment if the activity is required or even endorsed by the employer, and any injuries or illnesses sustained might give rise to potential workers’ compensation claims. Company parties have also been the backdrop for sexual harassment and other complaints, particularly if employees become unruly and engage in improper behavior while intoxicated.

As alluded to above, an employer should emphasize its policies prohibiting alcohol abuse, harassment, fighting and other misconduct, all of which apply at a company social event. An employer can also consider refusing to serve alcohol to visibly intoxicated people, issuing a limited number of drink tickets, having nonalcoholic drink options and/or offering an alternative to driving (e.g., cabs, designated drivers, Uber services). Additionally, an employer should review its workers’ compensation and general liability insurance policies and contact the carriers for specific guidance on coverage and liability.

Published Date: June 16, 2026

The HR Question of the Month is provided by Zywave®, a company wholly independent from Federated Insurance. Federated provides its clients access to this information through the Federated Employment Practices Network with the understanding that neither Federated nor its employees provide legal or employment advice. As such, Federated does not warrant the accuracy, adequacy, or completeness of the information herein. This information may be subject to restrictions and regulation in your state. Consult with your own qualified legal counsel regarding your specific facts and circumstances.