Special Needs Estate Planning
Build a Future Where Your Child is Protected, Empowered, and Never Alone.
Your Child Deserves a Future That’s Safe, Secure, and Filled with Possibility Even When You’re Not There
When you have a child or loved one with special needs, planning for their future isn’t just important it’s essential.
You want to make sure they’re protected, financially secure, and able to live with dignity, without losing access to crucial benefits like Medicaid and SSI. But navigating the complexities of Special Needs Trusts and ABLE Accounts can feel overwhelming.
At Legacy Solutions Law Firm, we don’t just fill out forms. We create custom-tailored Special Needs Plans that protect your loved one’s quality of life while preserving their eligibility for vital government support. We walk with you through every step, ensuring that your loved one is safeguarded now and for years to come.
The Cost of Not Planning
Imagine building a life of support for your child, only to see it collapse because of one oversight.
A single misstep, like an unexpected financial gift or improperly managed inheritance, can jeopardize your loved one’s eligibility for benefits. The right legal structures protect their access to medical care, housing, and support services.
Our team ensures your plan is ironclad, so your loved one is never left vulnerable. We structure their future with the precision and care it deserves, so you can focus on what matters: loving them, supporting them, and watching them thrive.
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First-Party Special Needs Trusts
Funded with the beneficiary's own assets (e.g., settlements, inheritances) to maintain Medicaid and SSI eligibility while providing financial support. We expertly structure these trusts to legally shield assets, ensuring long-term care and financial stability without losing critical government benefits.
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Third-Party Special Needs Trusts
Created by parents or loved ones to protect gifts and inheritance without affecting Medicaid and SSI benefits. We help you design these trusts to safeguard your loved one’s financial future while preserving their access to vital benefits.
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ABLE Accounts
Enhance your loved one’s quality of life with tax-advantaged savings that don’t interfere with benefit eligibility. We’ll guide you on how to maximize this powerful tool for medical, educational, and living expenses.
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Long-Term Care Planning
Build a financial and care structure that adapts to their needs as they grow older. Our strategic plans ensure their care is continuous, dignified, and legally protected.
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Emergency & Contingency Measures
Life is unpredictable. We prepare you for the unexpected with legally binding plans that activate when you need them most.
Special Needs Trust FAQs
A special needs trust is a legal arrangement that holds money or assets for a person with a disability without disqualifying them from SSI or Medicaid benefits in Florida. The trust is managed by a trustee who pays for approved expenses that supplement, rather than replace, the benefits the person already receives. Because the assets are legally owned by the trust and not the individual, they are generally not counted against SSI and Medicaid resource limits. Florida recognizes both first-party and third-party special needs trusts, each with different rules about how they are funded and what happens to remaining assets when the beneficiary passes away.
A first-party special needs trust is funded with the disabled person's own money, while a third-party special needs trust is funded with someone else's assets, such as a parent's or grandparent's. In Florida, first-party trusts are typically created when a person with a disability receives an inheritance, personal injury settlement, or retroactive government benefits in their own name. First-party trusts require a Medicaid payback provision, meaning the state may seek reimbursement from remaining trust funds after the beneficiary's death. Third-party trusts, commonly set up by parents in Broward County as part of their estate plan, do not require Medicaid reimbursement and offer greater flexibility.
A properly drafted special needs trust will not cause your child to lose SSI or Medicaid eligibility in Florida. SSI and Medicaid have strict limits on how much money or property a person can own, and a direct inheritance or gift can quickly disqualify a recipient. When assets are placed in a compliant special needs trust, those funds are not counted as the child's personal resources under federal benefit rules. However, the trustee must follow distribution guidelines carefully so that payments do not count as income that reduces or eliminates benefits.
A special needs trust in Florida can generally pay for supplemental expenses such as therapy, education, transportation, personal care items, technology, and recreational activities. The trust is intended to enhance the beneficiary's quality of life beyond what government programs like SSI and Medicaid already cover. As of September 30, 2024, the SSA no longer counts food paid by a special needs trust as income that affects SSI benefits, giving trustees significantly more flexibility for grocery and meal expenses. Payments for shelter costs such as rent, mortgage, or utilities are still considered in-kind support and maintenance under SSA rules and can reduce the SSI benefit amount, even if they do not end eligibility entirely. Families in Hollywood and across Broward County should work with a qualified trustee who understands these distinctions.
If your child or loved one receives or may in the future receive SSI or Medicaid, working with a special needs trust attorney in Hollywood, Florida is far safer than using an online form. Generic online documents rarely account for Florida statutes, Medicaid program rules, or local court practices in Broward County. A single drafting error can invalidate the trust's benefit-protecting structure and cause an immediate loss of coverage. An experienced attorney can tailor the document to your family's specific circumstances and ensure it complies with both federal and Florida law.
For families with a child with a disability in Florida, a special needs trust is often the most important part of the entire estate plan. Parents typically create a third-party special needs trust inside their will or revocable living trust so that any inheritance passes directly into the trust rather than to the child outright. Life insurance policies and retirement accounts can also name the trust as beneficiary to ensure those funds are protected. This structure allows parents throughout Broward County to provide lasting financial support for their child without ever putting SSI or Medicaid at risk.
Yes, a first-party special needs trust in Florida can be used to protect a personal injury settlement for a person with a disability. Without a trust in place, a settlement paid directly to the individual can immediately disqualify them from SSI and Medicaid due to the asset limits those programs impose. By placing settlement funds into a compliant trust, the money can continue to be used for the person's benefit while government benefits remain intact. This strategy is especially important for individuals in South Florida who depend on Medicaid-funded therapies, home care, or other ongoing services.
An ABLE account is a tax-advantaged savings account available to certain people with disabilities, while a special needs trust is a more flexible legal arrangement with fewer restrictions on contribution amounts and use. In Florida, ABLE accounts have annual contribution limits and a total balance cap beyond which SSI may be affected, and they are only available for individuals whose disability began before age 46. Special needs trusts do not carry those same contribution caps and can receive large amounts such as an inheritance or settlement without a strict age requirement. Many families in Broward County choose to use both tools together as complementary parts of a comprehensive disability planning strategy.
Many families in Florida choose to set up a special needs trust even before their child has applied for or is receiving SSI or Medicaid. Creating the trust early means that future inheritances, life insurance proceeds, and gifts can be directed into the trust from the start, preventing those assets from ever being titled in the child's name. This can make it significantly easier to qualify for benefits later when the child reaches adulthood or when medical needs become more complex. Planning ahead gives families in Hollywood and throughout Broward County more options and less stress in the future.
Choosing the right trustee is one of the most important decisions when establishing a special needs trust in Florida. A trustee can be a family member, a trusted friend, a professional fiduciary, or a nonprofit trustee organization, and the best choice depends on the size of the trust and the complexity of the beneficiary's needs. The trustee must be organized, financially responsible, and knowledgeable about SSI and Medicaid distribution rules to avoid accidentally reducing the beneficiary's benefits. Some families in South Florida appoint a professional co-trustee alongside a family member to combine legal expertise with personal knowledge of the beneficiary.
What happens to remaining trust funds depends entirely on which type of trust was set up. With a third-party special needs trust, meaning one funded with a parent's or grandparent's money, there is no Medicaid payback requirement when the beneficiary passes away. Any remaining funds go to whoever the trust document names as remainder beneficiaries, such as siblings or other family members. With a first-party special needs trust, meaning one funded with the beneficiary's own money such as a settlement or inheritance, Florida Medicaid may seek reimbursement from whatever remains in the trust for benefits paid during the person's lifetime. This is one of the most important distinctions between the two trust types, and it is a core reason why families work with an experienced attorney to structure the trust correctly from the start. Coordinating trust funds with an ABLE United account in Florida can also help reduce Medicaid exposure at death for first-party trust beneficiaries.
A pooled special needs trust is managed by a nonprofit organization that combines the funds of many beneficiaries into a single investment pool while keeping each person's account separate. This structure allows for professional management at a lower cost than a traditional individually managed trust, making it a practical option for families who may not have large assets to protect or who want an alternative to naming a family member as trustee. In Florida, there are several established pooled trust programs available, including those affiliated with disability service organizations. One important consideration is what happens to remaining funds when the beneficiary passes away. Depending on the program, some portion of remaining funds may be retained by the nonprofit rather than passing to heirs. Families should review those terms carefully before enrolling, and an attorney who understands both pooled and individual trust structures can help you decide which approach fits your family's goals.
This is one of the most common and important questions families ask, especially since the rules changed significantly in 2024. As of September 2024, the SSA removed food from the category of in-kind support and maintenance, meaning a special needs trust can now pay for groceries and meals without reducing a beneficiary's SSI check. However, housing is a different story. Payments for rent, mortgage, utilities, and similar shelter costs are still counted as in-kind support and maintenance under SSA rules, which can reduce the monthly SSI benefit by up to one-third. This does not mean the trust cannot pay for those items, but the trustee needs to understand the trade-off and plan distributions carefully. Some families strategically allow the trust to cover non-housing supplemental expenses while the beneficiary uses SSI for shelter costs, preserving the full benefit amount. Working with a knowledgeable trustee and attorney is essential for navigating these rules correctly.
A special needs trust and a guardianship serve very different purposes, and understanding the relationship between the two is important for families planning long-term care. Guardianship is a legal arrangement where a court grants an individual or organization authority to make personal and sometimes financial decisions for a person who has been determined to lack the capacity to make those decisions independently. A special needs trust, by contrast, is a financial planning tool that holds and manages assets for the beneficiary's benefit without requiring any court involvement in day-to-day decisions. Many families in South Florida use both together: the guardian handles healthcare, living situation, and personal decisions, while the trustee manages the trust assets according to the trust document. It is also worth knowing that Florida has expanded its supported decision-making framework in recent years, which allows individuals with disabilities to get assistance making their own decisions rather than having a guardian appointed. Discussing both options with an attorney who handles both special needs trusts and guardianship matters ensures your family has a plan that fits the actual level of support your loved one needs.
Resources to Guide Your Journey
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Hollywood, FL 33021