At Biello & Soowal, PLLC, we understand that raising or caring for a loved one with special needs comes with unique challenges and immense responsibility. As Florida estate planning attorneys, we know your biggest concern is ensuring your loved one is protected today and long after you are gone. That’s where our team comes in.
Our firm helps families across Florida create smart, compliant, and compassionate special needs plans designed to preserve public benefits and ensure the best quality of life for individuals with disabilities.
Special needs planning is not just about legal paperwork. It’s about peace of mind. It’s about knowing that your child, sibling, or dependent with a disability will continue to be supported emotionally, financially, and practically, without compromising their eligibility for crucial government assistance programs like Medicaid or Supplemental Security Income (SSI). We help make that possible.
What Is Special Needs Planning?
Special needs planning is a legal and financial strategy tailored to meet the lifelong care needs of individuals with physical, developmental, or mental disabilities. While every family’s needs differ, one common goal unites them: protecting the person’s future while preserving access to vital public assistance programs.
Without a proper plan, well-meaning financial gifts or inheritances can unintentionally disqualify someone from receiving essential government benefits. Families often turn to us as their trusted Florida special needs planning law firm. We craft individualized plans for each person’s medical needs, future care, income sources, legal rights, and family dynamics.
The Consequences of Not Planning
Failing to plan—or using the wrong legal tools—can have serious consequences. Many government programs have strict income and asset limits. For instance, in Florida, a person cannot receive SSI if they have more than $2,000 in countable assets. A simple inheritance from a parent or grandparent, or even a legal settlement from a lawsuit, could easily exceed that limit and terminate benefits.
Once benefits are lost, requalifying can be extremely difficult and time-consuming. This disruption could leave a disabled individual without access to health care, housing, or other supports—precisely the outcomes we seek to avoid.
What Is a Special Needs Trust?
The foundation of most special needs plans is a Special Needs Trust (SNT). These trusts are carefully designed to hold and manage assets on behalf of a disabled individual without interfering with their eligibility for needs-based government programs.
Rather than giving money or property directly to a loved one with special needs, families can place assets into a trust. The trust can then pay for certain “non-essential” items—such as therapies not covered by insurance, special equipment, education, travel, hobbies, and sometimes even housing-related expenses—without affecting eligibility for benefits like Medicaid or SSI.
Our Florida estate planning attorneys ensure these trusts are properly drafted, funded, and administered in full compliance with federal and state regulations.
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Types of Special Needs Trusts in Florida
There are three primary types of special needs trusts recognized under Florida law, each with its purpose and guidelines:
First-Party Special Needs Trust
Also known as a (d)(4)(A) trust, this type is funded with the beneficiary’s assets. Familiar sources include personal injury settlements, backpay from disability benefits, or inherited funds not placed into a third-party trust in time.
These trusts must be:
- Created by a parent, grandparent, guardian, or court.
- Established for an individual under the age of 65.
- Include a Medicaid payback provision, meaning any remaining funds at the beneficiary’s death must be used to reimburse the state for Medicaid benefits received.
Third-Party Special Needs Trust
This is the most commonly used trust for proactive planning. A third-party SNT is funded with assets belonging to someone other than the beneficiary, such as parents or grandparents. These are typically included in a broader estate plan and do not require payback to Medicaid upon the beneficiary’s death. Instead, remaining assets can go to other family members or charities.
These trusts can be:
- Standalone documents set up during the grantor’s lifetime.
- Testamentary trusts are established in a will and activated upon the grantor’s death.
Pooled Special Needs Trust
Pooled trusts are managed by nonprofit organizations and group multiple beneficiaries’ assets together for investment purposes, while still keeping individual accounts. These are often used when:
- The total assets are too small to warrant creating a private trust.
- The family prefers a nonprofit to manage and distribute the funds.
Florida’s leading pooled trust programs include The Able Trust and the Guardian Trust.
Understanding the Legal Requirements
To be considered valid and effective, special needs trusts must meet very specific legal requirements under both federal law (such as 42 U.S.C. § 1396p(d)(4)(A)) and Florida law. For instance, funds must not be distributed directly to the beneficiary, or they could be counted as income and jeopardize eligibility. Only a trustee—not the beneficiary—can access or manage the trust assets.
As a Florida special needs planning law firm, we carefully review your family’s assets, benefits, and long-term goals. We ensure that the legal documents we draft are airtight, compliant, and customized to your unique needs.
The Role of the Trustee
The trustee of a special needs trust has significant responsibility. They manage the trust’s assets, make appropriate distributions, file taxes, keep records, and ensure the beneficiary continues to qualify for government programs. A trustee must also understand the legal restrictions on what the trust can and cannot pay for.
You may name a family member, a trusted friend, or a professional fiduciary as trustee. Sometimes, we serve as trustees or co-trustees to ensure compliance and reduce the burden on families.
We also guide family trustees on how to manage the trust according to best practices, legal mandates, and the evolving needs of the disabled individual.
Government Benefits: What’s at Stake
Public benefits are often a financial lifeline for individuals with special needs. Losing access to these programs can mean losing critical services. That’s why preserving eligibility is at the heart of any sound special needs plan. Here are a few key programs we help protect:
Supplemental Security Income (SSI)
SSI provides monthly payments to disabled, blind, or elderly people with limited income and resources. To qualify, a recipient must typically have under $2,000 in assets.
Medicaid
Medicaid covers a wide range of medical services that private insurance often excludes. Florida Medicaid also provides waiver programs like the iBudget Florida waiver, which funds services such as in-home support, transportation, and medical supplies.
SNAP and HUD Housing Assistance
Additional benefits like food assistance (SNAP) and public housing may also be at risk if an individual suddenly receives countable assets without proper planning.
Florida Law and Special Needs Planning
Florida law incorporates federal regulations but also has state-specific nuances. For example, Florida Statutes § 393.063(12) defines developmental disabilities and guides service eligibility. Meanwhile, the Florida Bar’s guidelines for elder and disability law provide additional frameworks for structuring SNTs and guardianships.
Having a local attorney familiar with both state and federal rules is critical. Our team brings this localized knowledge to every family we help.
The ABLE Account Alternative
An ABLE (Achieving a Better Life Experience) account is another planning tool for eligible individuals who became disabled before age 26. These accounts allow the person with disabilities to save up to $17,000 per year (as of 2024) without impacting SSI or Medicaid.
While helpful, ABLE accounts have funding and usage limits, often used alongside a special needs trust, not as a replacement.
Additional Planning Tools
A holistic plan often includes more than just a trust. At Biello & Soowal, PLLC, we also help families integrate:
- Guardianships: A court-appointed guardian may be needed for adults with significant disabilities who cannot manage their personal or financial affairs.
- Power of Attorney (POA): A durable POA allows someone else to make decisions if the individual becomes incapacitated.
- Health Care Surrogates and Living Wills: These documents ensure that medical preferences are honored and necessary care decisions are legally authorized.
- Letters of Intent: Though not legally binding, a letter of intent is a critical guide for future caregivers. It outlines daily routines, medical needs, behavioral triggers, religious beliefs, and more.
Planning for the Long-Term
Your loved one’s needs will change over time. Our role as your Florida estate planning attorneys does not end once the documents are signed. We conduct periodic reviews of special needs plans to ensure they meet legal requirements and reflect your evolving wishes.
Changes in laws, benefits programs, or your family situation could require modifications to your plan. We stay up to date so you don’t have to.
Why Families Choose Biello & Soowal, PLLC
Families throughout Florida trust us with their most sensitive planning needs because we combine technical legal knowledge with personal, compassionate service. Here is what sets us apart:
- Understanding of both federal and Florida-specific disability law
- Customized planning tailored to your family structure and assets
- Experienced drafters of complex special needs trusts
- Ongoing support and counsel for trustees and family members
- Coordinated planning with your financial planner, accountant, or care coordinator
We are proud to be known as a dependable Florida special needs planning law firm that families can turn to during life’s most complex moments.
Frequently Asked Questions: Special Needs Planning in Florida
Can I fund a Special Needs Trust with life insurance?
Yes. Life insurance is one of the most effective ways to fund a special needs trust without impacting your assets. A common strategy is to purchase a life insurance policy and name the trust, not the individual with special needs, as the beneficiary. This ensures the trust is funded immediately upon your passing, providing long-term financial support without affecting benefit eligibility.
Are there tax benefits to creating a Special Needs Trust?
While special needs trusts do not typically provide upfront tax deductions, they can offer long-term tax advantages. Income earned by the trust is taxed, but if structured correctly, income may be taxed at the beneficiary’s rate rather than the higher trust tax rate. Distributing income to third parties for the beneficiary’s benefit may reduce the trust’s tax liability. We work closely with financial planners and CPAs to ensure the trust is administered in a tax-efficient manner.
What happens when the primary caregiver can no longer provide care?
Transition planning is essential. A comprehensive special needs plan should name successor caregivers and trustees, include a letter of intent with detailed care instructions, and ensure legal authority through guardianship or durable powers of attorney where appropriate. We help families structure plans that remain viable even if the original caregivers pass away or become incapacitated.
How can siblings or other family members contribute to the trust?
Family members can contribute to a third-party special needs trust if properly established. They can add gifts, inheritances, or even proceeds from family fundraising events. However, they should never give assets directly to the individual with special needs, as this could compromise benefit eligibility. We advise all contributing family members to coordinate with us so that gifts are legally and financially sound.
Do I still need a special needs plan if my loved one is high-functioning or independent?
Yes. Even independent individuals may qualify for or depend on Medicaid or housing assistance programs. A special needs plan can support future medical care, transportation, and emergency needs while maintaining independence.
Have more questions? Contact us today to schedule a personalized consultation.
Take the First Step: Contact Us
If you care for a loved one with special needs, don’t wait to plan for the future. The sooner you act, the more options you have—and the more protection you can provide.
At Biello & Soowal, PLLC, we are ready to help. We’ll sit down with you, explain your options clearly, and walk with you every step of the way. Whether you need to create a special needs trust, petition for guardianship, or update an outdated plan, we are here for you.
Schedule your consultation today and take the first step toward peace of mind for your entire family.
