Jacksonville Special Needs Trust Lawyer

Experienced Special Needs Trust Attorney in Jacksonville, FL

Putting together an estate plan that helps provide for the long-term needs of a disabled family member can be challenging. Families want to provide financial stability, but they also usually want their loved ones to remain eligible for any programs they need. A Jacksonville special needs trust lawyer can explain how special needs trusts work and how they may fit into your estate plan.

Contact a Jacksonville trust attorney at the Law Office of Douglas A. Oberdorfer, P.A., today.

About Us

The Law Office of Douglas A. Oberdorfer, P.A., has been serving individuals and families in Jacksonville with estate planning, trusts, probate, trust administration, and elder law concerns since 2003.

Douglas Oberdorfer has over 20 years of legal experience, including time spent as an assistant state attorney in Florida. He is licensed in both Florida and North Carolina. Families looking for estate planning options that take into account the particular financial and legal requirements of loved ones with disabilities can receive assistance from us.

What Is a Special Needs Trust?

Also known as supplemental needs trusts, a special needs trust can help provide money for education, housing, food, medical care, and other expenses without jeopardizing eligibility for certain government benefits. Rather than inheriting assets directly, a special needs trust beneficiary receives the financial support of a trust fund.

A trustee manages the trust. Assets can be distributed at the trustee’s discretion for supplemental needs that improve the disabled beneficiary’s quality of life. Special needs trusts are intended to allow beneficiaries to retain eligibility for means-tested public benefit programs like Medicaid and Supplemental Security Income.

The Centers for Disease Control and Prevention estimates that approximately 61 million Americans, or more than one in four adults, have a disability. People 65 years of age and older are more likely to suffer from disabilities, with two out of five having a recognized impairment. For many American families, this emphasizes the significance of long-term financial and estate planning tools, like special needs trusts.

Florida Laws That Apply to Special Needs Trusts

Florida statutes establish the requirements and protections applicable to all trusts created inside the state. Chapter 736 of the Florida Statutes, known as the Florida Trust Code, governs the creation, administration, and enforcement of trusts. Florida Trust Code contains special needs trust laws affecting trustees, trust administration, and beneficiary rights.

Meanwhile, 42 U.S.C. § 13pd (4) authorizes first-party special needs trusts under federal law. Many first-party special needs trusts must satisfy the requirements of this federal statute to protect the beneficiary’s Medicaid eligibility.

Types of Special Needs Trusts

There are several different types of special needs trusts, and the specific type you establish should be based on where the assets in the trust originate.

Third-party special needs trusts are usually funded by another person who isn’t the beneficiary. Grandparents, parents, or other relatives may create irrevocable special needs trusts for beneficiaries. Third-party special needs trusts are often funded with assets from a will or living trust. Life insurance policies and retirement accounts can also be used to fund third-party special needs trusts by listing the trust as the owner or beneficiary.

First-party special needs trusts contain assets that belong to the disabled beneficiary. An inheritance from someone other than a parent, a settlement from a personal injury claim, or funds from a retirement account could all be used to fund it.

Pooled trusts are managed by nonprofit organizations. Although they invest and manage the funds as one large pool, each beneficiary has a separate account.

When to Hire a Special Needs Trust Lawyer

In addition to drafting trust documents, many families who hire a special needs trust lawyer have questions about how to structure a trust, fund a trust, choose a beneficiary, and select a trustee. A Jacksonville special needs trust attorney can provide legal guidance on these issues and keep trust documents compliant with program rules for Medicaid and Supplemental Security Income (SSI) eligibility.

Should you ever need to go to court regarding your special needs trust in Jacksonville, Florida, the Duval County Courthouse is located at 501 W. Adams Street, Jacksonville, FL 32202. Most special needs trusts do not require any litigation, but if litigation is necessary, it will likely be handled in Duval County.

FAQs

What Can a Special Needs Trust Pay for in Florida?

A special needs trust can pay for things like education, housing, transportation, technology, medical expenses, personal care services, and entertainment. Keep in mind that distributions should never replace government benefits but should merely supplement them. Ultimately, a special needs trust can pay for anything that’s not explicitly prohibited by the trust’s terms, as long as trustees follow all applicable federal and state laws when making distributions.

What Is the Downside of a Special Needs Trust?

A special needs trust can take time and effort to plan and administer. The trustee needs to adhere to specific guidelines when investing and managing the trust’s assets, and when making payouts, all while maintaining the beneficiary’s eligibility for government aid. Administrative fees and trustee responsibilities are other factors to consider.

What Can’t a Special Needs Trust Pay For?

In general, a special needs trust should not make distributions that are prohibited by the trust document or that risk eligibility for public benefits. For example, giving cash to the beneficiary could disqualify them from Supplemental Security Income. Additionally, a trustee should be aware of what the trust funds cannot be used for under federal and state public benefit rules before using the funds for those purposes.

Can a Special Needs Trust Pay for a Vacation?

Yes. If allowed by the trust and not prohibited by the rules of any benefit programs, the trust could pay for a vacation. Many special needs trusts use funds for travel, hotel stays, recreation, and entertainment. Essentially, if the purchase or payment is supplemental to government benefits and does not affect eligibility for public benefits, it is likely allowable.

Contact a Jacksonville Special Needs Trust Lawyer at the Law Office of Douglas A. Oberdorfer, P.A., Today

When planning for a loved one’s future, there are many issues to consider. From trust documents, government benefit rules, and long-term financial aspirations, it can be difficult to understand how they all work together for your family.

At the Law Office of Douglas A. Oberdorfer, P.A., we work with Jacksonville area families on special needs trusts, estate planning, trust administration, and related matters to develop plans that are customized for your unique situation. Contact us today for assistance with your special needs trust case.