A Special Needs Trust (SNT) is a powerful estate planning tool designed to provide financial support to individuals with disabilities while protecting their eligibility for government benefits such as Medicaid or Supplemental Security Income (SSI). At Michael Greenwald, P.A., we assist the Broward County public in creating and managing Special Needs Trusts to secure a better quality of life for their loved ones with disabilities.

What Is a Special Needs Trust?

A Special Needs Trust is a legal arrangement that allows assets to be set aside for the benefit of a person with disabilities without jeopardizing their eligibility for means-tested government programs. Funds from the trust can be used for a variety of purposes, including:

• Medical expenses not covered by insurance.
• Education and vocational training.
• Personal care services.
• Transportation and travel.
• Recreational activities.

Types of Special Needs Trusts

1. First-Party Special Needs Trust:

• Funded with the disabled individual’s own assets, such as an inheritance or settlement from a personal injury lawsuit.
• Must comply with Medicaid payback rules, meaning any remaining funds in the trust after the beneficiary's death may be used to reimburse Medicaid for expenses paid on their behalf.

1. Third-Party Special Needs Trust:

• Funded by someone other than the beneficiary, such as a parent or grandparent.
• Assets in this trust are not subject to Medicaid payback, making it a preferred option for family members planning for a loved one’s future.

1. Pooled Special Needs Trust:

• Managed by a nonprofit organization and combines assets from multiple beneficiaries while keeping individual accounts.
• Suitable for individuals with smaller amounts of money to fund the trust.

When Do You Need a Special Needs Trust?

You may need a Special Needs Trust in the following situations:

1. Planning for a Child with Disabilities:

• If you want to ensure your child with special needs is cared for financially without affecting their eligibility for critical government benefits.

1. Receiving a Lump Sum:

• If an individual with disabilities is about to receive an inheritance, settlement, or other significant assets, creating a trust can shield these funds from impacting benefits.

1. Providing Lifetime Support:

• A Special Needs Trust ensures that the beneficiary will have financial resources for their lifetime, even after the death of the trust’s creator.

1. Avoiding Disqualifications:

• Without a Special Needs Trust, assets left directly to a person with disabilities could disqualify them from receiving benefits like Medicaid or SSI.

How Michael Greenwald, P.A. Can Help

Creating a Special Needs Trust involves careful planning and legal expertise to comply with complex state and federal laws. At Michael Greenwald, P.A., we work closely with families in Broward County to design customized trusts that meet their unique needs and provide peace of mind.

If you’re considering a Special Needs Trust, contact us today for a consultation. Let us help you protect your loved one’s future while preserving their access to essential benefits.