Special Needs Trusts for Florida Families
A special needs trust, also called a supplemental needs trust, holds an inheritance for a loved one with a disability. The money can pay for things that improve their life without being counted against means-tested benefits such as SSI and Florida Medicaid.
Why an outright inheritance can cause harm
SSI and Medicaid have strict asset limits. Leaving money directly to a loved one who receives these benefits can disqualify them until the money is spent down. A special needs trust keeps the inheritance available while protecting eligibility.
Third-party and first-party trusts
- Third-party special needs trusts hold money from parents, grandparents or others. They're usually built into your revocable trust or will, and any funds left at your loved one's death can pass to other family members.
- First-party special needs trusts hold the disabled person's own money, such as a personal injury settlement or an inheritance received outright. Federal law requires these trusts to repay Medicaid from what remains at death.
Choosing a trustee
The trustee decides how trust money is spent and must understand the benefit rules. Many families name a family member together with a professional or co-trustee. We explain the options and draft the trust so the trustee has clear guidance.
ABLE accounts
For people whose disability began before a qualifying age, a Florida ABLE United account can work alongside a special needs trust for everyday expenses.
Special needs trust questions
What can a special needs trust pay for?
Items and services that benefits don't cover, such as education, therapies, travel, equipment, and a phone or computer. Paying for food or shelter can reduce SSI, so the trustee should plan those payments carefully.
Can the trust be part of my existing estate plan?
Yes. We often add a continuing supplemental needs trust to a revocable living trust, as we did for the family described on our home page.