8/14/2019 Special Needs Trust: The Smart Way to Protect Your Loved One

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Generous And SmartMany of us have a fam-

ily member who is not self-sufficient, and probablynever will be. Maybe itsa child or grandchild witha disabling mental or phys-ical condition, or a spousewith Alzheimers disease.If you choose to protectthat person financially, youhave to be smart about howyou go about it. General-ly speaking, its not a good

idea to leave your loved one a lumpsum outright, whether as a gift dur-ing your lifetime or as a bequest whenyoure gone. Doing so could makeyour loved one lose vital governmentbenefits such as SSI or Medicaid towhich hed otherwise be entitled.

Fortunately, there is a solution that

allows you to be both generous andsmart. The Special Needs Trust (SNT)is a sophisticated legal tool that whenproperly funded and drafted, can pro-vide supplemental services to yourloved onewithout jeopardizing hiseligibility for basic governmental ben-efits.

You may create a Special NeedsTrust to care for a disabled child orgrandchild regardless of the childsage. The SNT may be funded now, tohelp with his needs while youre stillalive. Or you can bequest fundsthrough your will or trust that willflow into the Special Needs Trust whenyoure gone. The trust can be used toprovide such extras as second med-ical opinions, special educationalequipment, supplemental types of ther-apyin other words, all kinds of life-enhancing services the governmentdoes not ordinarily cover.

A Special Needs Trust can also beuseful if your spouse is receiving long-

term care Medicaid benefits, or is like-ly to need them in the future. Under

Florida law, when you passaway, your spouse is enti-tled to 30% of your aug-mented estate, whether ornot the assets are probated.If your spouse currently re-sides in a nursing home andis receiving Medicaid ben-efits, he or she may bethrown off the program ifthey receive the inheritance.If your spouse is at homebut will likely need a nurs-

ing facility if you predecease him, re-ceiving that 30% share may mean Med-icaid benefits are not available untilthe 30% is completely exhausted.

The good news, under Florida lawyou can leave that 30% or even moreof your estate for your spouse in aSpecial Needs Trust, thus protecting

his or her access to Medicaid bene-fits. The monies in the trust can beused for life-enhancing extras like pri-vate nurses, perhaps a specializedwheelchair, or custom transportationso that he or she can leave the nurs-ing home to attend family functions.Through the trust you can also make

provisions so that when your spousedies, any remaining trust assets passto the beneficiaries.

The Special Needs Trust is as com-plicated as it is beneficial. Be certainto consult with a certified elder lawattorney who can determine whetherits appropriate for your situation andcan best structure it for your familysneeds.

Joseph S. Karp is a nationally certifiedand Florida Bar-certified elder law attorney(C.E.L.A.) specializing in the practice of Trusts,

Estates and Elder Law. His offices are locat-ed at 2500 Quantum Lakes Drive, Boynton

Beach; 2875 PGA Blvd., Palm Beach Gar-dens; and 1100 SW St. Lucie W. Blvd., PortSt. Lucie. Call him at 561-752-4550 (Boyn-ton); 561-625-1100 (Palm Beach Gardens);

or 772-343-8411 (Port St. Lucie). Toll-freefrom anywhere: 800-893-9911. E-mail: KLF@Karplaw.com. or website www.karplaw.com

Joseph S. Karp,C.E.L.A.