Families with loved ones who have disabilities face unique challenges when planning for the future. In Florida, even small financial gifts or inheritances can disqualify a person from receiving critical public benefits like SSI or Medicaid. For many, this creates uncertainty around providing financial support without unintentionally causing harm.
One way to protect benefits while offering support is through a special needs trust. This type of trust lets families set aside funds for a loved one with a disability without affecting access to programs like Medicaid or SSI. It can cover many expenses that improve quality of life, including personal care, transportation, and specialized services.
Aventus Law Group helps Florida families design and administer these trusts with clarity and compassion. Our team understands the emotional and legal concerns of supporting a loved one with special needs. We guide clients through the process, ensuring compliance, preserving benefits, and aligning with broader estate goals.
Understanding the Role of a Special Needs Trust
When a loved one receives government benefits, even a small inheritance or gift can cause them to lose vital support. A properly structured special needs trust allows families to provide financial resources without affecting eligibility for Medicaid, SSI, or similar programs. These trusts preserve access to care while covering supplemental needs like transportation, therapy, and personal items.
There are different types depending on how the trust is funded. First-party trusts use the beneficiary’s money, often from a settlement or inheritance. Family members create third-party trusts as part of an estate plan. Pooled trusts, managed by nonprofits, combine resources from multiple families while maintaining individual accounts.
Trustee Duties and Legal Requirements
Administering a special needs trust requires strict compliance with Florida law and benefit program rules. Trustees must manage funds carefully to avoid disqualifying the beneficiary from public aid.
Key duties include:
- Use limits: Trusts cannot pay for food or shelter without affecting SSI or Medicaid, but can fund supplemental needs like therapy or transportation.
- Recordkeeping: Trustees must track all disbursements and keep detailed records for benefit agency review.
- Tax and reporting: Annual filings and compliance with federal trust tax rules may be required.
- Fiduciary oversight: Trustees must act in the beneficiary’s best interest, avoiding conflicts and misuse of funds.
Integrating a Special Needs Trust into a Broader Estate Plan
Estate plans often involve multiple components working together to meet long-term goals. When a loved one has a disability, including a special needs trust within that framework, helps preserve public benefits while supporting future care needs.
Balancing the interests of all beneficiaries—disabled and non-disabled—requires careful coordination. Updating beneficiary designations, selecting trustees, and aligning asset titles are key steps in ensuring that the trust supports your overall plan without creating conflicts or unintended consequences.
Frequently Asked Questions
Who should consider creating a special needs trust?
Any family member planning to leave assets to a loved one with a disability should explore this option to avoid disrupting public benefits.
Can I serve as trustee for my child’s trust?
Yes, but you must follow strict rules on distributions and reporting. In some cases, it is advisable to appoint a co-trustee or professional trustee.
Will a special needs trust affect SSI or Medicaid eligibility?
When properly drafted and administered, the trust will not count as a resource for SSI or Medicaid purposes.
Can the trust pay for housing or food?
Yes, generally, but these payments may reduce SSI benefits. The trust is best used for supplemental needs beyond basic support.
Plan With Confidence
Providing for a loved one with a disability requires more than financial support—it requires the proper legal structure to protect their well-being over time. A misstep in planning can have lasting consequences, including losing essential benefits.
Aventus Law Group helps Florida families build secure, compliant solutions by carefully creating special needs trusts. We bring legal insight and personal understanding to each case, assisting clients to take thoughtful steps toward long-term security.
To start planning today, contact Aventus Law Group or explore our services to learn how we can assist.