Special Needs Trusts in Florida: How to Protect a Disabled Loved One Without Destroying Their Benefits

If you have a child, sibling, or other loved one with a disability who receives government benefits like Medicaid or Supplemental Security Income (SSI), leaving them a direct inheritance could be the most damaging thing you could do. Assets received directly can push them over the eligibility threshold, causing them to lose critical benefits. A properly structured Florida Special Needs Trust solves this problem entirely.

What Is a Special Needs Trust?

A Special Needs Trust (SNT) is a legally recognized trust that holds assets for the benefit of a person with disabilities without counting those assets toward Medicaid or SSI resource limits. The trust can pay for expenses that government benefits don't cover — including education, transportation, recreation, personal care items, technology, and quality-of-life enhancements — while preserving full benefit eligibility.

Third-Party vs. First-Party Special Needs Trusts

A Third-Party SNT is funded by parents, grandparents, or other family members — not the disabled individual. This is the most common type used in estate planning. A First-Party SNT (also called a Self-Settled Trust or d4A Trust) is funded with the disabled person's own assets, often from a personal injury settlement or inheritance received before the trust was established. Each type has distinct rules and Medicaid payback requirements.

Why Professional Drafting Is Essential

An improperly drafted Special Needs Trust can inadvertently disqualify your loved one from benefits or fail to achieve your intended purpose. Florida SNTs must comply with both state law and federal benefit program regulations. Choosing the right trustee, including proper discretionary language, and coordinating the trust with your overall estate plan are all critical decisions that require experienced legal guidance.

Plan for Your Loved One's Future with Bechert & Associates

At Bechert & Associates, P.A., we help Broward County families create Special Needs Trusts that protect their most vulnerable loved ones for life. Serving Pompano Beach, Fort Lauderdale, Boca Raton, and all of South Florida — call us today to discuss your family's unique situation.