If you provide care and assistance to a child or an adult with special needs in Florida, it can be heartbreaking to imagine what would happen if you could no longer provide this care. Fortunately, there are things you can do now to ensure your loved one is still getting the care they need, even if you are not around anymore to help.
Special Needs Trust: A Basic Overview
Also referred to as a supplemental needs trust, a special needs trust (SNT) is a type of trust that provides loved ones the support they require without hindering their ability to obtain government benefits. This is important as, many times, those with a physical or mental disability tend to rely on government programs such as Medicaid or Supplemental Security Income (SSI) for help.
Although special needs trust can be created for several reasons, they often are constructed when one of the following events occurs:
- A child who is disabled and receiving public benefits gets an inheritance.
- A child who is disabled and receiving public benefits gets proceeds from a legal suit.
- An adult who is disabled, living in a skilled nursing facility, and receiving public benefits gets proceeds from a legal suit.
- An adult who is disabled, living in a skilled nursing facility, and receiving public benefits obtains an inheritance.
These situations often create issues for those receiving public benefits since these programs prohibit individuals from earning over a certain amount of money. That is why creating a Florida special needs trust is often the best option for these individuals so that they do not lose their benefits.
Types of Special Needs Trusts
There are two basic types of special needs trusts. They include third-party trusts and self-settled trusts, also known as first-party special needs trusts.
These trusts are set up by loved ones or a friend for the benefit of an individual who is disabled. The trust’s creator contributes assets to the trust, and the beneficiary will have no control over the trust’s assets. The main goal of these trusts is for the beneficiary to continue to be eligible for government assistance programs while getting additional benefits that those programs may not cover.
Self-Settled Special Needs Trusts
A self-settled special needs trust is established by the individual who is disabled or another individual acting on their behalf. This trust is created using funds to which the disabled individual has a right to possess. Typically, these proceeds come from a lawsuit, settlement, or inheritance, which may otherwise disqualify the disabled individual from government benefit programs.
For More Information About Special Needs Trusts In Florida, Contact The CYA Law Firm Today
The CYA Law Firm is a firm that focuses on helping clients with estate planning, asset protection, and business law. The founding lawyer, Adalbert “Al” Martinez, is a compassionate advocate dedicated to helping his clients resolve their asset protection issues and safeguard their assets.
If you are looking for further information about creating a special needs trust in Florida, contact The CYA Law Firm and book a consultation with Attorney Adalbert “AL” Martinez today.