Special Needs Trusts in Gainesville, FL

What is a special needs trust?

A special needs trust is a way to move assets and income around so that an applicant for government benefits can meet the asset and income requirements.

If the assets/income are properly in a special needs trust, then they are not counted against you for purposes of meeting the assets or income tests to receive benefits. This makes special needs trusts incredibly useful for disabled individuals with any significant assets at all. However, special needs trust have to be set up following both state and federal rules, which can make them difficult to use properly without help from an attorney.

Broadly speaking, there are two types of special needs trusts: first-party special needs trusts and third-party special needs trusts. It is important that you choose right kind of trust to meet your need. Otherwise, you find out that the trust disqualified the disable person from receiving benefits or that the trust results in extra money being used to repay to the government unnecessarily.

When is a special needs trust needed?

A special needs trust is needed when someone needs access to government benefits but has too many assets to qualify. For example, the receipt on an inheritance might stop a disabled person from receiving their supplemental security income. However, if the inheritance is not given outright to the disabled person but instead placed into special needs trust for their benefit, then the trust can use the money for the disabled person’s benefit without disqualifying them from their government aid.

How much money can be put in a special needs trust?

There is no limit to how much money you can put in a special needs trust. As long as the trustee follows the rules, the trust assets are not counted against the disabled individual receiving government benefits. And this remains true regardless of how funded the trust is.

Who can be the trustee of a special needs trust?

The trustee can be almost anyone. Choose someone competent and at least 18 years of age. And be sure to consider whether this person will take the time to follow the many rules governing how special needs trust assets may be used.

Can I be the trustee of my own special needs trust?

No, you cannot be the trustee of your own special needs trust. If you are the trustee, then you have the ability to use the assets in any way you so choose. This power means that the assets will still be considered to be a resource and thus will be counted against you for purposes of the asset test to qualify for benefits. Therefore, it is unwise to be your own trustee when dealing with special needs trusts. A much better option is choosing someone you trust to handle the trust for you.

What can be paid out of a special needs trust?

The trustee can buy anything for the special needs trust beneficiary that is either (1) not used for the “support and maintenance” of the disabled individual or (2) exempt. “Support and maintenance” is understood to mean food, shelter, and all health care expenses that may be covered by public assistance benefits. For a full list of exemptions, see POMS 01110.210.

Is there an age limit for a special needs trust?

You must be under 65 to create one kind of special needs trust called a “disability trust.” But in Florida, there is no age limit for the other special needs trusts. This leaves elderly individuals with a lot of options when trying to qualify for government benefits like Medicaid.

What happens to the money in a special needs trust at death?

Depending on what kind of special needs trust you have, the money will either be used to pay back the government for Medicaid benefits or it will go to new beneficiaries.

If you set up a first-party special needs trust, all funds left in the trust when the disabled individual dies are subject to Medicaid repayment to reimburse the state of Florida for all the money spent on the individual through the Medicaid program. If long-term care benefits were received, this payback will likely eat up the everything left in the trust at death.

If you have a third-party special needs trust, then the trust assets should not be subject to Medicaid. Instead, the trust document determines what happens to the assets. In other words, the person who makes the trust gets to make the decision about what happens after death.

Where can I get a special needs trust in Gainesville, FL?

If you want a special needs trust, you should make an appointment with a Gainesville elder law attorney that understands the law surrounding special needs trusts. The law in this area is complex, so it is important that you find an attorney who is already familiar with this area of law. A good way to start looking might be to type “special needs trust attorney near me” in a search engine.

Or you can just give Blake Moore a call. Blake Moore is a local Gainesville lawyer who understands special needs trusts and believes in helping those with disabilities. Book a free consultation today.