What is a Special Needs Trust?
Do you have a child, grandchild, or other close loved one with special needs? You are certainly not alone. The Pew Research Center reports that 42 million American adults have some form of a medically determinable disability. The National Center for Education Statistics (NCES) reports that one-third of students nationwide receive some form of special education-related services.
You need to make a specialized estate plan to protect a loved one who has special needs. Leaving them money or property directly could be a big mistake. A special needs trust is the best estate planning tool to provide support while ensuring that your loved one can retain all of their benefits. Here, our St. Petersburg estate planning attorney provides a guide to special needs trusts in Florida.
The Challenge: Most Programs Special Needs Individuals Rely On are Means-Tested
Why is it a problem to name a special needs loved one as an heir in a will? The short answer is that they may be relying on public benefits. Most key public benefits—including Medicaid and Supplemental Security Income (SSI)—are strictly means-tested. That means that a vulnerable person could potentially lose access to support if they have too much income or too many assets in their name. In other words, well-meaning gifts/inheritance from a loved one could unintentionally disqualify a special needs individual from receiving benefits.
A Special Needs Trust is the Solution
There is good news: A special needs trust is a unique type of trust that can solve the challenges of estate planning for a loved one who has unique medical issues. Whether you are a parent, guardian, or grandparent, establishing this type of trust can be a powerful way to provide strong legal and financial protection for your most vulnerable loved one. Here are a few key advantages of using a special needs trust as an estate planning tool in Florida:
- Preserves Public Benefits Eligibility: Assets in a properly structured SNT do not count against SSI or Medicaid eligibility requirements. It solves the core problem of special needs planning.
- Covers Supplemental Expenses: Funds in the trust can be used to pay for things not covered by public benefits—such as education, hobbies, travel, or personal care—enhancing quality of life. Many expenses can be covered by funds on a special needs trust.
- Provides Long-Term Protection: A trustee manages the assets in the trust and distributes them in a way that aligns with the person’s needs and the family’s wishes. It can provide true, reliable long-term financial security to a vulnerable person.
Contact Our St. Petersburg Estate Planning Attorney Today
At Fisher & Wilsey, P.A., our St. Petersburg estate planning attorney is a skilled, solutions-focused advocate for clients. If you have any questions about special needs trust, please do not hesitate to contact us today for a fully confidential consultation. With an office in St. Petersburg, we handle special needs planning in Pinellas County and throughout the region in Florida.
Sources:
pewresearch.org/short-reads/2023/07/24/8-facts-about-americans-with-disabilities/
nces.ed.gov/programs/coe/indicator/cgg/students-with-disabilities
