Reviewed by Daniel Wagner
When a family member has a disability, leaving them money or assets in a traditional way can do more harm than good. In Florida, individuals who rely on Medicaid, Supplemental Security Income, or other government assistance programs must meet strict asset limits to remain eligible. An inheritance that pushes them over those limits can cut off benefits they depend on for daily care, housing, and medical support.
A Special Needs Trust is the solution most families do not know they need until it is too late. At the Law Offices of Gottlieb Wagner, we help Aventura families structure trusts that protect a loved one’s quality of life without putting their government benefits at risk.
How a Special Needs Trust Works
A properly drafted Special Needs Trust, also called a Supplemental Needs Trust, holds assets for the benefit of a person with a disability without those assets being counted toward program eligibility thresholds. The trust supplements what government programs provide rather than replacing them.
The trustee manages and distributes funds for approved expenses such as:
- Education and vocational training
- Transportation and vehicle modifications
- Recreation, travel, and social activities
- Personal care items not covered by Medicaid
- Technology, equipment, and home accessibility improvements
What the trust cannot do is pay for basic support items that government programs already cover, such as food and shelter, without potentially affecting benefit calculations. Proper drafting and ongoing administration are essential.
Types of Special Needs Trusts in Florida
Florida recognizes several types, and choosing the right one depends on where the funding comes from and who establishes it. A third-party Special Needs Trust is funded with assets belonging to someone other than the beneficiary, typically a parent, grandparent, or other family member. This is the most common structure used in estate planning. When the beneficiary passes away, remaining assets can pass to other heirs with no repayment obligation to the state.
A first-party or self-settled trust is funded with assets that belong to the person with the disability, often from a personal injury settlement or an inheritance received without a trust in place. Under federal law, these trusts require a Medicaid payback provision upon the beneficiary’s death. According to the Social Security Administration, assets held in a properly structured trust generally do not count against SSI resource limits.
A pooled trust is administered by a nonprofit organization and may be appropriate for smaller estates or situations where a private trustee is not available.
Why Drafting Matters More Than Most Families Realize
A trust that is poorly worded, improperly funded, or missing required language can be disqualifying rather than protective. Florida follows both state law and federal program rules, and those rules interact in ways that require careful attention. The Florida Agency for Health Care Administration oversees Medicaid eligibility standards that directly affect how trust distributions are treated.
Contact an Aventura Trusts Attorney Today
Gottlieb Wagner brings focused attention to every detail that determines whether a Special Needs Trust works for your family. Call us at (305) 919-7788 or visit our website to speak with our team.