What is a special needs trust?

A special needs trust is a legal device that enables individuals with disabilities to receive and manage assets without losing eligibility for federal and/or state disability benefits like Medicaid and Supplemental Security Income (SSI). A special needs trust is designed to help individuals with disabilities maintain their quality of life, while also protecting their eligibility for public assistance. It is important to note that special needs trusts are established to provide benefits to an individual with a disability and are not for the benefit of other family members. In the state of Florida, there are two types of special needs trusts that are commonly used. The first type is a third-party special needs trust, which is funded with assets belonging to someone other than the individual with a disability. The second type is a self-settled special needs trust, which is funded with assets owned by the individual with a disability. In either case, the trust must be established and managed according to the requirements of the law in Florida. All special needs trusts must have a trustee who is responsible for managing the trust and ensuring that it is managed according to the law. The trustee is also responsible for ensuring that the assets are used only for the benefit of the individual with a disability. Special needs trusts can help individuals with disabilities maintain their quality of life and independence, while also preserving eligibility for public assistance. They are an important part of disability planning law in the state of Florida and should be considered as part of any overall estate planning strategy.

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What is a special needs trust?

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