Special Needs Trusts in Florida: Protecting a Loved One’s Future

If you have a child or loved one with disabilities, one of your biggest worries is likely what happens to them when you are no longer able to provide care. A special needs trust is a powerful tool that lets you provide for a loved one without jeopardizing the government benefits they rely on. Here is how special needs trusts work in Florida.

What Is a Special Needs Trust?

A special needs trust (sometimes called a supplemental needs trust) is a legal arrangement that holds assets for the benefit of a person with disabilities. The key advantage is that assets in the trust are not counted as the beneficiary’s own resources—so they can receive support without losing eligibility for needs-based government programs like Medicaid and Supplemental Security Income (SSI).

Why Government Benefits Are the Whole Point

Programs like Medicaid and SSI have strict income and asset limits. If a person with disabilities inherits money directly or receives a large gift, they can suddenly be disqualified from these benefits—losing healthcare and support worth far more than the inheritance. A special needs trust solves this problem by keeping assets out of the beneficiary’s name while still using them for the beneficiary’s benefit.

What Can a Special Needs Trust Pay For?

The trust is designed to supplement, not replace, government benefits. It can typically pay for extras that improve quality of life, such as:

• Education, tutoring, and job training
• Therapies and medical care not covered by Medicaid
• Personal care attendants
• Travel, entertainment, and hobbies
• Adapted vehicles, technology, and equipment

Types of Special Needs Trusts

• Third-party special needs trust: Funded with assets from someone other than the beneficiary—typically parents or grandparents planning ahead. This is the most common type in estate planning.
• First-party special needs trust: Funded with the beneficiary’s own assets, often from a personal injury settlement or inheritance. These have a Medicaid payback requirement.
• Pooled trust: Managed by a nonprofit that pools resources from many beneficiaries while keeping separate accounts.

Connecting to a Personal Injury Settlement

If someone receiving needs-based benefits wins a personal injury settlement, placing those funds in a first-party special needs trust can preserve both the settlement and their benefits. As a firm that handles both estate planning and personal injury, we can coordinate the two to protect our clients fully.

Why Work With an Attorney?

Special needs trusts are governed by detailed federal and state rules, and a mistake can cost your loved one their benefits. An attorney ensures the trust is drafted correctly, funded properly, and integrated into your broader estate plan.

Give your loved one security for the future. Call Alfredo J. Rubio Law, PLLC at 1-844-PODEMOS for a free consultation about special needs planning—in English or Spanish.

Frequently Asked Questions

Will a special needs trust affect my loved one’s Medicaid or SSI?

No—that is the purpose of the trust. Properly drafted, a special needs trust holds assets in a way that does not count against the beneficiary’s eligibility for needs-based benefits like Medicaid and SSI.

Who can set up a special needs trust in Florida?

Parents, grandparents, or other loved ones can establish a third-party special needs trust as part of their estate plan. A first-party trust can be created using the beneficiary’s own assets, subject to specific legal requirements.

What can special needs trust funds be used for?

The trust supplements government benefits and can pay for things like education, therapies not covered by Medicaid, personal care, travel, technology, and other items that improve the beneficiary’s quality of life.

What happens to a personal injury settlement for someone on Medicaid?

A large settlement can disqualify someone from needs-based benefits, but placing the funds in a first-party special needs trust can preserve both the settlement and their eligibility. An attorney can coordinate the settlement and the trust.