What is a special needs trust?

A special needs trust is a type of trust designed to provide financial and other beneficial resources to someone with special needs. It is typically established by the parent, guardian, or caregiver of the beneficiary with disabilities. The trust is designed to supplement government benefits that the beneficiary may already be receiving, without jeopardizing their eligibility. Florida is one of the few states that have specific laws on special needs trusts, which are outlined in Fla. Stat. §744.389. These laws provide guidance on how the trusts should be set up and funded in order to ensure that the beneficiary is provided with the most beneficial resources possible. In Florida, special needs trusts can be set up as either first-party trusts or third-party trusts. First-party trusts are funded with the beneficiary’s own assets, and as such, the trust is not subject to Social Security Administration rules regarding income and resource limits. Third-party trusts, on the other hand, are funded with assets from a third party, such as family or friends, and are subject to Social Security Administration rules. In either case, special needs trusts must be set up and managed in accordance with the Florida statutes in order to protect the beneficiary’s best interests. This includes specifying how the funds in the trust can be used, detailing what happens to the trust assets if the beneficiary dies, and ensuring that the trust is properly managed to provide the beneficiary with the resources they need.

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What is a special needs trust?

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