Special Needs Trust Requirements in Florida

Comprehensive estate planning is a difficult topic. It is not pleasant to think about, but it is part of life. If you have children, comprehensive estate planning is even more important, and it is never too early to start thinking about it. This is especially true if you have a child or family member who has special needs. However, if you are responsible for the care and well-being of someone with special needs, you may have questions about the right strategy to ensure that he or she can continued to be cared for after your death. Our experienced estate planning attorneys will work with you to determine the best approach to estate planning based on your needs, and that may include the creation of a special needs trust.

Understanding Special Needs Trusts

In general, trusts are vehicles that enable you to provide for your heirs’ well-being by establishing a legal entity to which your assets will be distributed. That entity will then distribute your assets to the beneficiary you have chosen. There are many different types of trusts, ranging from trusts to ensure your pet is taken care of to life insurance trusts. Special needs trusts are one option for ensuring that the long-term care needs of a person with disabilities can be met. Many times, individuals with special needs rely on disability benefits to provide services, especially since out-of-pocket costs can be difficult for most families to manage. However, individuals are only eligible for many of these disability benefits if they make less than a certain amount of money. The problem for individuals relying on these services is that receiving a large influx of cash or other assets could render them ineligible to continue receiving those services. Establishing a special needs trust will help the individual continue to receive benefits, especially those related to Supplemental Security Income (SSI) and Medicaid, while also having other needs provided for through the trust.

Florida Special Needs Trust Requirements

Beneficiaries of a special needs trust need to be under the age of 65 and disabled in order to qualify. In the past, parents or grandparents needed to establish a special needs trust. However, recent developments may make it possible for an individual to establish his or her own special needs trust. You will also need to appoint a trustee to oversee the special needs trust. It is important to select the right trustee for this purpose because he or she will typically have discretion over how the funds are distributed.

One extremely important thing to remember about special needs trusts is that money left in the trust when the disabled individual for whom the trust was established dies must be used to pay back the state for costs associated with care provided through disability benefits. Consequently, when making estate planning decisions for a disabled individual covered by a special needs trust, it is important to realize that this reimbursement will have a significant impact on any money left in the trust.