On behalf of Law Offices of Frye, Fortich & Garcia, P.L. | May 27, 2025 | Estate Planning
A Vital Step for Future Security
Families of individuals with disabilities often face a unique set of challenges, especially when it comes to ensuring long-term financial security. In Florida, creating a Special Needs Trust (SNT) is one of the most effective ways to protect a loved one’s financial future without jeopardizing their eligibility for essential government benefits like Medicaid or Supplemental Security Income (SSI).
A Special Needs Trust is a legal arrangement where assets are held on behalf of a beneficiary with disabilities. These funds can pay for expenses that public benefits don’t cover, such as personal care attendants, out-of-pocket medical expenses, education, recreation, and travel. Crucially, because the assets are owned by the trust and not the individual, they are not counted against asset limits for public assistance programs.
Types of Special Needs Trusts available in Florida.
- First-Party Special Needs Trust is funded with the beneficiary’s own assets—such as an inheritance or a settlement from a lawsuit. Florida law requires that these trusts must include a Medicaid payback provision upon the beneficiary’s death.
- Third-Party Special Needs Trust is funded with assets belonging to someone else, typically parents or other family members, and does not require Medicaid reimbursement.
- Pooled Trusts are another option, managed by nonprofit organizations, which allow families to pool resources while maintaining separate accounts for each beneficiary.
Creating a Special Needs Trust involves careful planning. In Florida, the trust must comply with both federal and state regulations to ensure the beneficiary retains eligibility for government assistance. Working with an attorney experienced in Florida estate planning and special needs law is essential. The attorney will draft the trust document to specify how funds should be used, designate a reliable trustee, and include provisions that protect the beneficiary’s rights and best interests.
In short, a Special Needs Trust offers peace of mind, ensuring that a loved one’s quality of life is maintained without compromising critical benefits. By setting up the trust correctly, Florida families can safeguard financial resources, foster independence, and prepare for a secure, dignified future.
