Estate planning for families with special needs dependents is both a legal and personal journey. In Florida, the process requires careful planning to ensure your loved one’s lifetime care, financial stability, and continued eligibility for critical government benefits.
Without proper planning, well-intentioned financial gifts or inheritances could unintentionally disqualify your loved one from means-tested programs such as Medicaid or Supplemental Security Income (SSI). By understanding the unique challenges and using the right legal tools, you can create a plan that provides for their needs without jeopardizing their future.
Unique Challenges for Florida Families
Families with special needs dependents often face circumstances that require specialized planning, including:
- Means-Tested Benefits: Medicaid and SSI have strict income and asset limits. Even small increases in assets can cause ineligibility.
- Future Care Planning: Establishing who will make legal, medical, and financial decisions if you are unable to is critical.
- Long-Term Financial Needs: Costs for therapies, medical care, and adaptive equipment often extend throughout a lifetime.
Key Florida-Specific Estate Planning Tools
- Special Needs Trusts (SNTs)
An SNT allows you to set aside assets for your loved one’s benefit without disqualifying them from public benefits. Florida recognizes two primary types:
- Third-Party SNT: Funded by parents, relatives, or others—either during life or through a last will or living trust.
- First-Party SNT: Funded with the dependent’s own assets (for example, from a personal injury settlement). Florida law requires court approval for these trusts in certain cases.
- Guardianship & Alternatives
Florida law allows for plenary (full) or limited guardianship when an adult with special needs cannot make certain decisions independently. Planning ahead allows you to designate a trusted guardian through your last will or pre-need guardian declaration.
- ABLE Accounts
Florida’s ABLE United program offers tax-advantaged savings accounts for individuals with disabilities. Funds can be used for qualified expenses without affecting SSI or Medicaid eligibility (up to program limits).
- Last Wills & Living Trusts
Your last will or living trust should coordinate with your Special Needs Trust to ensure assets flow into it rather than directly to your loved one. This avoids disqualification from benefits.
- Letter of Intent (LOI)
While not legally binding, an LOI provides detailed instructions for future caregivers—covering routines, medical needs, likes/dislikes, and personal history. This personal guidance can be invaluable.
Additional Considerations for Florida Families
- Funding Your Plan: Consider life insurance, retirement accounts, and other assets to fund the trust.
- Regular Reviews: Florida laws and benefit programs change, so review your plan every 2–3 years or after major life events.
- Emotional Factors: Address the emotional needs of both your dependent and future caregivers.
- Community Resources: Leverage Florida’s disability networks, support groups, and online resources for ongoing support.
Why Legal Guidance Matters
Florida’s statutes, guardianship rules, and public benefit regulations are complex. Working with a Florida attorney who focuses on special needs estate planning ensures your documents are legally sound and tailored to your family’s needs.
The right plan can provide peace of mind—knowing your loved one will be cared for, financially protected, and still able to access essential government programs.
The foregoing is a brief and general overview of the topic and the need for specific and experienced legal and tax advice is emphasized.
Next Step: If you have a special needs dependent in Florida, our law firm as well as other experienced estate planning attorneys can help you design a customized, legally compliant plan that protects both their future and your peace of mind.
Call CASERTA & SPIRITI in Miami Lakes today to schedule a confidential consultation.