Our West Palm Beach Trust Attorneys are frequently asked what are special needs trusts? Florida Special Needs Trusts, also sometimes known as Florida Supplemental Needs Trusts, are created in order to provide financial assistance to individuals with physical and/or mental disabilities. The settlor or grantor of the trust will appoint a trustee that is charged with managing the trust and the disbursement of funds. Given the considerable power the trustee has, it is a good practice to choose the trustee very carefully especially if the beneficiary is a minor. The trustee will dispense the proceeds of the trust for various expenses often consisting of medical or dental expenses, caretakers, physical therapy, travel and a variety of other expenses as permitted by the trust.
The Florida Special Needs Trust can be a mutually beneficial tool for the grantor and the beneficiary. These trusts are specifically tailored to provide for the needs of the beneficiary that are not paid by public assistance and the law provides that the assets held in this trust are not considered for the purposes of qualifying the beneficiary for public assistance. Therefore, from a planning perspective this a win-win because the settlor is assured that the proceeds will be used for the beneficiary’s needs and the beneficiary has a way of receiving additional financial support to cover items that are not paid for by the government.
Another aspect of Florida Special Needs Trusts that warrants mention is that this trust is irrevocable. In the other words, once the trust is created the terms of the trust may not be amended or revoked. While that is indeed limiting, the advantage of irrevocability is that the assets of the trust cannot be reached by creditors.
Make sure to give the knowledgeable West Palm Beach Trust Attorneys at The Law Office of Ryan S. Shipp, PLLC, a call @ 561 699.0399 to discuss your Florida Estate Planning Needs or to answer any questions that you may have.
Like this Blog? Please see below links to our other Wills, Trusts & Estates Blog Posts
- Is A Florida Pour-Over Will Different Than A Regular Will?
- What are the duties and obligations of a trustee under Florida Law?
- What is a Florida Revocable Trust and Why is it important?
- Why is a Florida Last Will and Testament Important?
- Florida Special Needs Trusts
- Different Types of Florida Powers of Attorney
- Persons Associated with Florida Trusts
- Revocable vs Irrevocable Trust Florida
