What is the difference between a revocable living trust and a special needs trust?

A revocable living trust and a special needs trust are two types of trust structures that can be used for disability planning in Florida. A revocable living trust is an estate planning tool that allows the settlor (creator) of the trust to transfer ownership of their assets to the trust during their lifetime, and to retain control of the assets, by serving as the trustee and beneficiary. This type of trust also allows the settlor to modify the terms of the trust during their lifetime, and upon their death, the assets are distributed according to the terms of the trust. A special needs trust, on the other hand, is an irrevocable trust that is used to provide for the needs of an individual with a disability, without jeopardizing their eligibility for means-tested government benefits such as Medicaid and Supplemental Security Income (SSI). Unlike a revocable living trust, the settlor of a special needs trust cannot modify the terms of the trust after it is created. Furthermore, the assets in the trust must be distributed in accordance with the terms of the trust, and cannot be distributed directly to the disabled individual. This is to ensure that the individual remains eligible to receive their government benefits.

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What is the difference between a revocable living trust and a special needs trust?

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