Tampa Special Needs Trust Attorney
Many government benefit programs are designed to help low-income individuals meet their needs. Two of the more common examples are people who require Florida Medicaid or Supplemental Security Income (SSI) benefits. An applicant cannot own more than a certain amount of assets to receive these benefits.
This can present challenges if an applicant or current benefits recipient suddenly inherits a large amount of money. If you are looking to leave such an inheritance, you may need to consider establishing a special needs trust. Our Tampa special needs trust attorney can advise and assist you in this process. Knudsen Law is a full-service Florida estate and probate firm that can help you in creating a plan that helps your chosen beneficiaries without jeopardizing their ability to receive critical public benefits.
The Basics of Florida Special Needs Trusts
A trust is where a grantor gives assets to a trustee, who must then hold and use that property on behalf of a beneficiary. In a special needs trust, the beneficiary is a person who requires means-tested government benefits like Medicaid. Simply giving assets to the beneficiary would mean they are no longer eligible for such benefits. Giving those assets to a trustee, however, means that the beneficiary is not considered the lawful “owner” of that property. The trustee can then administer funds from the trust to provide for the beneficiary’s needs.
Generally speaking, there are three types of special needs trusts in Florida:
- Self-Settled: A self-settled trust is funded with the beneficiary’s own assets, such as an inheritance from a family member or even a legal settlement. After the beneficiary dies, however, funds remaining in a self-settled special needs trust must be used to reimburse the State of Florida for any Medicaid benefits the beneficiary received during their lifetime.
- Third-Party: If you fund a trust with your assets to benefit someone else, that is considered a third-party special needs trust. Third-party trusts are not subject to Medicaid reimbursement. Upon the beneficiary’s death, any remaining funds are distributed as directed by the grantor.
- Pooled: There are various non-profit organizations that pool and invest funds for multiple special needs beneficiaries, which are known as pooled trusts.
It is important to understand that special needs trusts are not designed to replace government benefits but rather supplement them. In the case of Medicaid recipients, for example, the state does not cover many forms of personal care, such as grooming needs or housekeeping assistance. A special needs trust can pay for such items, including some medical services that are also not covered by Medicaid.
Contact Our Tampa Special Needs Trust Lawyers Today
A Florida special needs trust must be drafted carefully to protect the beneficiary’s status as an eligible Medicaid or SSI recipient. That is why it is crucial that you work with an experienced Tampa special needs trust attorney. If you would like to speak with a lawyer as soon as possible, contact Knudsen Law today at (727) 398-3600 to schedule a consultation.
