Special Needs Trusts

A special needs trust offers numerous advantages for disabled individuals. Its primary purpose is to preserve their eligibility for need-based public assistance programs like Medicaid and SSI. Since these programs are based on financial need, having substantial amounts of money or property can disqualify applicants. Unapproved sources of income, such as lawsuit payments or large inheritances, can also jeopardize their eligibility. A special needs trust addresses these issues by allowing disabled individuals to receive benefits from assistance programs while also benefitting from assets held within the trust.

There are limits to the special needs trust. Assets in a special needs trust can only be expended on behalf of the disabled individual in a manner that supplements the benefits they receive from public benefit programs such as Medicaid. Additionally, the Medicaid program will most likely have a lien against any property remaining in the special needs trust, equal to the amount of Medicaid benefits paid out over the life of the trust, after the beneficiary passes. This may result in no trust property remaining to distribute to the person’s family.

By creating a special needs trust in Florida, families can ensure ongoing support for their loved ones even after their passing, without impacting the individual’s eligibility for other forms of assistance.

Contact Raymond S. Grimm Esq. P.A.

Call Raymond S. Grimm Esq. P.A. today at (941) 423-7897 or complete our online contact form for a complimentary consultation.