Estate Planning

Special Needs
Trusts in Florida

Leaving money directly to a loved one with disabilities can cost them their Medicaid or SSI benefits. A Special Needs Trust protects both the inheritance and the benefits so your love leaves a lasting impact.

Schedule a Free Discovery Call Learn More
Florida Bar Member Estate Planning Attorney Serving All of Florida Free Discovery Call

The Basics

What Is a Special Needs Trust?

A Special Needs Trust (SNT) is a legally recognized trust designed to hold assets for the benefit of a person with a physical or mental disability , without disqualifying them from government benefit programs like Medicaid or Supplemental Security Income (SSI).

These programs have strict asset limits. If a person with disabilities receives more than a small amount of money , whether by inheritance, gift, or settlement , they can lose their benefits. A SNT holds the funds in trust instead, allowing a trustee to spend them on supplemental needs without triggering that disqualification.

Special Needs Trusts require careful drafting. The language must comply with federal and Florida law, and the trust must be coordinated with every other document in your estate plan , your will, your living trust, and your beneficiary designations.

Schedule a Discovery Call

Watch: How a Special Needs Trust Protects Your Loved One

What It Accomplishes

Six Ways a Special Needs Trust Protects Your Family

Preserve Government Benefits

A properly drafted SNT allows a person with disabilities to receive an inheritance or settlement without losing eligibility for Medicaid, SSI, or other means-tested government benefits.

Enhance Quality of Life

Trust funds can be used for education, recreation, technology, travel, personal care attendants, and other expenses that improve life without duplicating what government programs already cover.

Name a Trusted Trustee

You choose who manages the trust and makes distribution decisions. That person can be a family member, a professional trustee, or a nonprofit organization with experience in disability planning.

Receive Legal Settlements

Personal injury settlements and other legal awards can be placed in a first-party SNT (also called a d4A trust) to protect a person's benefits while receiving compensation for their injury.

Plan Across Generations

A third-party SNT (funded by family members) has no Medicaid payback requirement, meaning remaining funds can pass to other heirs after the beneficiary's death.

Coordinate With Your Broader Estate Plan

A SNT must be coordinated with your will, trust, and beneficiary designations. Accidentally leaving money directly to a person with disabilities , even a small sum , can disrupt their benefits.

Natalia Ouellette-Grice, Estate Planning Attorney

Why LCO Law

Disability Planning Done Right , From Every Angle

A Special Needs Trust is only as strong as the estate plan around it. We make sure every document , your will, your living trust, your beneficiary designations , is coordinated so no asset accidentally passes directly to your loved one and disrupts their benefits.

  • We assess the right type of SNT for your family's specific situation
  • Your trust is drafted to comply with both federal and Florida disability law
  • We coordinate the SNT with every other document in your estate plan
  • We advise on trustee selection and help you plan for successor trustees
  • We guide family members on how to leave gifts without disrupting benefits

Common Questions

Special Needs Trust FAQ

A first-party SNT (also called a self-settled trust or d4A trust) is funded with the beneficiary's own assets , typically a personal injury settlement or inheritance received directly. It must include a Medicaid payback provision. A third-party SNT is funded by someone else , parents, grandparents, other family members , and has no payback requirement, so remaining funds can pass to other heirs. We help families understand which type applies and structure the trust accordingly.
A SNT can pay for goods and services that supplement , but do not replace , what government programs cover. This includes education, transportation, recreation, technology, personal care not covered by Medicaid, travel, hobbies, and other quality-of-life expenses. Cash distributions are generally prohibited because they can count as income and affect benefit eligibility.
Not directly, without risk. A standard distribution from a revocable living trust directly to a person receiving SSI or Medicaid can disqualify them from benefits. Instead, your trust should direct any inheritance for that beneficiary into a Special Needs Trust sub-trust, which we draft as part of a coordinated estate plan.
The trustee role for a SNT requires knowledge of disability law, government benefit rules, and sensitive family dynamics. Options include a trusted family member (often a sibling), a professional trustee with disability law experience, or a nonprofit pooled trust. We help you evaluate your options and choose the right person or institution for your family's situation.
For a third-party SNT, remaining funds pass to whoever you designate , other children, charities, or a trust for other beneficiaries. For a first-party SNT, there is a Medicaid payback requirement: the state must be reimbursed for benefits paid during the beneficiary's lifetime before remaining funds pass to other heirs. This is one of the key reasons third-party SNTs are preferred for family estate planning.

Ready to Get Started?

Schedule Your Free Discovery Call

Talk with our team about your loved one's situation. We will help you understand every option for protecting them without jeopardizing the benefits they depend on.

Keep Learning

Related Estate Planning Topics

Living Trusts

Coordinate your revocable trust with a Special Needs sub-trust.

Learn more

Beneficiary Designations

Make sure retirement accounts and life insurance align with your SNT.

Learn more

Last Will and Testament

Direct any remaining estate assets to the Special Needs Trust.

Learn more
, ' text-white"' > Special Needs
Trusts in Florida

Leaving money directly to a loved one with disabilities can cost them their Medicaid or SSI benefits. A Special Needs Trust protects both the inheritance and the benefits so your love leaves a lasting impact.

Schedule a Free Discovery Call Learn More
Florida Bar Member Estate Planning Attorney Serving All of Florida Free Discovery Call

The Basics

What Is a Special Needs Trust?

A Special Needs Trust (SNT) is a legally recognized trust designed to hold assets for the benefit of a person with a physical or mental disability , without disqualifying them from government benefit programs like Medicaid or Supplemental Security Income (SSI).

These programs have strict asset limits. If a person with disabilities receives more than a small amount of money , whether by inheritance, gift, or settlement , they can lose their benefits. A SNT holds the funds in trust instead, allowing a trustee to spend them on supplemental needs without triggering that disqualification.

Special Needs Trusts require careful drafting. The language must comply with federal and Florida law, and the trust must be coordinated with every other document in your estate plan , your will, your living trust, and your beneficiary designations.

Schedule a Discovery Call

Watch: How a Special Needs Trust Protects Your Loved One

What It Accomplishes

Six Ways a Special Needs Trust Protects Your Family

Preserve Government Benefits

A properly drafted SNT allows a person with disabilities to receive an inheritance or settlement without losing eligibility for Medicaid, SSI, or other means-tested government benefits.

Enhance Quality of Life

Trust funds can be used for education, recreation, technology, travel, personal care attendants, and other expenses that improve life without duplicating what government programs already cover.

Name a Trusted Trustee

You choose who manages the trust and makes distribution decisions. That person can be a family member, a professional trustee, or a nonprofit organization with experience in disability planning.

Receive Legal Settlements

Personal injury settlements and other legal awards can be placed in a first-party SNT (also called a d4A trust) to protect a person's benefits while receiving compensation for their injury.

Plan Across Generations

A third-party SNT (funded by family members) has no Medicaid payback requirement, meaning remaining funds can pass to other heirs after the beneficiary's death.

Coordinate With Your Broader Estate Plan

A SNT must be coordinated with your will, trust, and beneficiary designations. Accidentally leaving money directly to a person with disabilities , even a small sum , can disrupt their benefits.

Natalia Ouellette-Grice, Estate Planning Attorney

Why LCO Law

Disability Planning Done Right , From Every Angle

A Special Needs Trust is only as strong as the estate plan around it. We make sure every document , your will, your living trust, your beneficiary designations , is coordinated so no asset accidentally passes directly to your loved one and disrupts their benefits.

  • We assess the right type of SNT for your family's specific situation
  • Your trust is drafted to comply with both federal and Florida disability law
  • We coordinate the SNT with every other document in your estate plan
  • We advise on trustee selection and help you plan for successor trustees
  • We guide family members on how to leave gifts without disrupting benefits

Common Questions

Special Needs Trust FAQ

A first-party SNT (also called a self-settled trust or d4A trust) is funded with the beneficiary's own assets , typically a personal injury settlement or inheritance received directly. It must include a Medicaid payback provision. A third-party SNT is funded by someone else , parents, grandparents, other family members , and has no payback requirement, so remaining funds can pass to other heirs. We help families understand which type applies and structure the trust accordingly.
A SNT can pay for goods and services that supplement , but do not replace , what government programs cover. This includes education, transportation, recreation, technology, personal care not covered by Medicaid, travel, hobbies, and other quality-of-life expenses. Cash distributions are generally prohibited because they can count as income and affect benefit eligibility.
Not directly, without risk. A standard distribution from a revocable living trust directly to a person receiving SSI or Medicaid can disqualify them from benefits. Instead, your trust should direct any inheritance for that beneficiary into a Special Needs Trust sub-trust, which we draft as part of a coordinated estate plan.
The trustee role for a SNT requires knowledge of disability law, government benefit rules, and sensitive family dynamics. Options include a trusted family member (often a sibling), a professional trustee with disability law experience, or a nonprofit pooled trust. We help you evaluate your options and choose the right person or institution for your family's situation.
For a third-party SNT, remaining funds pass to whoever you designate , other children, charities, or a trust for other beneficiaries. For a first-party SNT, there is a Medicaid payback requirement: the state must be reimbursed for benefits paid during the beneficiary's lifetime before remaining funds pass to other heirs. This is one of the key reasons third-party SNTs are preferred for family estate planning.

Ready to Get Started?

Schedule Your Free Discovery Call

Talk with our team about your loved one's situation. We will help you understand every option for protecting them without jeopardizing the benefits they depend on.

Keep Learning

Related Estate Planning Topics

Living Trusts

Coordinate your revocable trust with a Special Needs sub-trust.

Learn more

Beneficiary Designations

Make sure retirement accounts and life insurance align with your SNT.

Learn more

Last Will and Testament

Direct any remaining estate assets to the Special Needs Trust.

Learn more