Do you have loved ones with special needs? Planning for their future is crucial as well as having the right Florida estate plan to protect them. Unfortunately, errors in your estate planning may have consequences you did not want and possibly disqualify your special needs loved ones from important government benefits or leave them at risk of financial hardship. Take great care because it is critical to know and understand the dangers of using the wrong approach when planning for the long-term care and financial security of family members with special needs.
In Florida one of the most significant dangers of improper estate planning for loved ones with special needs is the risk of disqualifying them from critical government programs like Medicaid and Supplemental Security Income (SSI). Be aware that these programs have strict asset and income limits, and leaving assets directly to your special needs loved ones in a last will and testament or trust agreement could push them over those limits. In addition, if there has been no careful planning, a well-meaning inheritance could cause your loved ones to lose access to the public benefits that provide critical healthcare and support services. It would then take time and legal intervention to reverse the consequences and leave your special needs loved ones without the support they need.
We are an experienced Florida estate planning law firm and we often see families make the mistake of leaving assets directly to their loved ones with special needs, either through a traditional trust or as an outright inheritance. This can, unfortunately, lead to serious financial issues. Be aware that a traditional trust does not provide the same protections as a special needs trust. The special needs trust is specifically designed to be sure that your special needs loved ones continue to qualify for public assistance programs while still benefiting from the assets placed in trust.
In addition, a special needs trust holds assets for the benefit of your loved ones without disqualifying them from benefits like Medicaid or SSI. It also allows a trustee to manage the assets and use them to cover expenses that improve the quality of life for your loved ones. What could those expenses be? They are those items not covered by government programs, such as educational opportunities, recreational activities, or personal care. Your experienced Florida estate planning attorney will be able to guide you in the planning you need to make. We know that without this trust in place, the inheritance of your special needs loved ones could quickly be spent down to meet asset eligibility requirements for public benefits, thus defeating the purpose of your estate plan.
Be aware that choosing the wrong trustee can be another common mistake in estate planning for loved ones with special needs in Florida. The trustee you choose is responsible for managing the assets in the special needs trust and making distributions on behalf of your loved ones. Selecting someone who is inexperienced, unfamiliar with special needs planning, or not fully committed to the long-term responsibilities may lead to poor management of the trust.
Often, a well-intentioned family member may not understand the legal requirements of managing a special needs trust and could inadvertently make distributions that disqualify your loved ones from benefits. To avoid this risk, be sure to discuss with your Florida estate planning attorney the consideration of appointing a professional trustee or corporate trustee with experience in managing special needs trusts.
As we use National Down Syndrome Awareness Month as a reminder, for individuals with Down Syndrome or other special needs, Florida estate planning must go beyond financial considerations. It is also critical to have a long-term care plan in place that outlines how the personal and medical care of your special needs loved ones will be managed as they age. Failing to establish a detailed care plan could leave your loved ones vulnerable, with no clear direction for their future care needs.
Keep in mind that an unchanging Florida estate plan is another danger when it comes to planning for loved ones with special needs. Too often families will set up a plan and assume it will work indefinitely. However, laws surrounding Medicaid, SSI, and special needs trusts frequently change, and the circumstances of your loved ones may change as well. An outdated Florida estate plan may no longer offer the protections you intended, and failure to review and update the plan can result in costly mistakes. Regular reviews with an experienced Florida estate planning and elder law attorney can help ensure that your plan remains compliant with current laws and is tailored to meet the changing needs of your loved ones.
We know this article raises more questions than it answers. The dangers of improper estate planning for a loved one with Down Syndrome or other special needs can be avoided with careful planning and the guidance of an experienced Florida estate planning and elder law attorney. Our office is here to help you navigate the legal issues related to estate planning, probate, and elder law for yourself and your loved ones. We encourage you to contact us and schedule a meeting with our attorneys.
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