Should I Establish a Special Needs Trust in Tampa?
A special needs trust could be the right option for many parents in Florida. As the name suggests, this type of trust is geared toward loved ones with special needs. With it, you can provide financial security for a vulnerable family member even after you pass away. Should you explore this option? What is the benefit of creating a special needs trust? These are questions you might want to ask an experienced Tampa trusts attorney.
Why Would Someone Consider a Special Needs Trust?
Families often consider special needs trusts if they want to provide for vulnerable loved ones without jeopardizing their access to government assistance. If implemented correctly, a special needs trust can provide financial support while maintaining access to SSI, SSDI, Medicaid, and other state or federal programs geared toward disabled individuals.
In order to understand the benefit of a special needs trust, you must first understand how the government determines eligibility for these programs. Asset and income limits ensure that these programs only provide benefits for those in need. If your loved one inherits a considerable fortune after you pass away, they may lose access to crucial government assistance.
A normal trust may still “count” towards asset and income calculations when determining eligibility. However, a special needs trust is specifically designed to bypass these calculations and ensure continued access to financial and medical benefits.
What Is the Official Definition of “Disabled” in Florida?
The legal definition of “disabled” is relatively vague in Florida, and this is similar to definitions in other states. In Florida, you are disabled if you have a physical or mental issue that substantially limits your ability to engage in major life activities. Examples of major life activities include self-care, manual labor, walking, seeing, hearing, learning, and working.
Parents should carefully consider this definition before establishing special needs trusts, as only parents with disabled children can create these trusts. If you’re not sure whether your family member is legally defined as disabled, consider speaking with an experienced attorney.
Note that in many circles, autism is considered to be a disability. This is especially true with ASD Level 3, a more pronounced form of autism that severely limits verbal communication and social interaction. Autism is now one of the most common learning disabilities for children in Florida.
What Happens to the Special Needs Trust After I Pass Away?
If you have established a special needs trust, it will continue to provide for your disabled child after you pass away. The trustee will follow any specific instructions you leave behind, and these trusts often include spendthrift provisions. This means that your loved one will receive gradual distributions from the trust assets. Note that your trust assets should not be spent on health care, shelter, or anything else that is already covered by government programs. If your loved one spends the assets on these expenses, they may lose eligibility.
Can a Tampa Estate Planning Lawyer Help Me Establish a Special Needs Trust?
A Tampa estate planning attorney may be able to help you establish a special needs trust. This process often begins with an initial consultation, allowing the family to discuss this option in more detail. Although a special needs trust offers numerous benefits, it might also be worth considering alternative estate planning strategies. Continue this conversation today by contacting Knudsen Law.
Source:
flsenate.gov/laws/statutes/2018/413.08
