Trust Planning For Special Needs

Special needs trust planning allows a person who is eligible for public benefit programs to receive such benefits while also receiving a supplemental income stream for non-necessity items (such as beauty salon visits, vacations, gifts for children and grandchildren, etc.). The public benefits recipient will always receive the benefits of the special needs trust for their lifetime as they always remain the trust beneficiary. However, they are able to receive the assistance of public benefits regardless of the funds placed in trust.

The trustee of the special needs trust can be a family member or a trained fiduciary (such as a law firm and/or attorney). The advantage of having a trained fiduciary to act as trustee is that such a person knows which activities fall within the guidelines allowable for the supplemental needs trusts, and which activities do not. Therefore, mistakes or disqualification of the special needs trust is less likely to occur.

The Special Needs Trust can be funded by a family member or by a trust beneficiary (if they have the capacity to do so). A Supplemental Needs Trust funded by a family member is referred to as a Third Party Supplemental Needs Trust, and a special needs trust that is funded by a special needs beneficiary is referred to as a self-settled special needs trust. Also, in Florida, provisions for the creation of a supplemental needs trust can be included in a healthier spouse’s last will and testament and/or revocable living trust in the event they predecease their less healthy spouse.

Contact Capital Planning Law, PLLC for your complimentary consultation to discuss your estate planning, probate, guardianship and/or real estate needs.