When someone you love has a disability, planning for the future comes with an extra question: how do you leave them something without costing them the benefits they rely on? Supplemental Security Income (SSI) and Medicaid have strict asset limits, so an inheritance left the wrong way can end eligibility. Sawyer & Sawyer, P.A. helps Windermere families plan around those rules with supplemental needs trusts and the documents that go with them.
How a Supplemental Needs Trust Works
A supplemental needs trust, also called a special needs trust, holds money for your loved one without counting as their own asset. A trustee you choose uses it for things government benefits don’t cover, such as:
- Education and training
- Transportation, including buying and maintaining a vehicle
- Vacations, recreation and hobbies
- Medical care and supplies not otherwise covered
- Personal items such as a computer or furniture
A third-party trust is funded by parents, grandparents or other family. It can stand alone or be built into a will or living trust. A first-party trust holds assets that already belong to the person with a disability, such as an inheritance or a settlement, and must repay Medicaid when that person passes away. Which one fits depends on where the money comes from.
Planning Ahead for Adulthood
When a child with a disability turns 18, parents no longer have automatic authority to make medical, financial or legal decisions for them. Depending on your child’s abilities, the answer may be a power of attorney and health care surrogate, a guardian advocate, or a guardianship. We’ll help you decide what fits.
Special Needs Planning in Windermere
Windermere’s Census figures show about 1 in 20 residents living with a disability. If a family member relies on SSI or Medicaid, how you pass on property matters as much as who receives it, and that includes a home.
A Lady Bird deed lets a home pass to the person you name at death with no court involvement. That works well when the situation is simple. But if the person who inherits through the deed has a disability, receiving the home directly could cost them their public benefits right away. A supplemental needs trust can address that. A deed can’t.
If you’re considering a Lady Bird deed, look at the whole plan first. We review how your home and other assets are set to pass, and make sure the share meant for your loved one goes to the trust rather than to them directly.
Figures: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates.
From Our Podcast: Special Needs Trusts: What Florida Families Must Know Before It’s Too Late
A supplemental needs trust needs upkeep after it’s signed. Cary Moss, Managing Partner at Sawyer & Sawyer, P.A., takes that on in this Life, Legacy & Wealth conversation, explaining what families must do to protect a disabled loved one’s benefits while still leaving them something to live on. For a plan that’s already in place, her advice is to know which life events call for an immediate update, and otherwise to review the trust every two to three years.
Why Windermere Families Work With Sawyer & Sawyer
Sawyer & Sawyer, P.A. is a family firm that has served Central Florida since 1994. We treat every client as an extension of our family, and we focus on people before the paperwork.
- Cary L. Moss, Esq., Managing Partner. Concentrates on estate settlement, probate, trust administration, long-term care planning and estate planning. Served five years on the Board of Directors of the Academy of Florida Elder Law Attorneys, including a term as president.
- Thomas P. Moss, Esq., Senior Attorney. Focuses on estate planning, guardianship and estate settlement. Former Co-Chair of the Orange County Bar Association’s Estate, Guardianship and Trust Law Committee.
Our office at 8913 Conroy Windermere Road in Orlando is about 5 minutes from Windermere.
Frequently Asked Questions
Will an inheritance affect my child’s SSI or Medicaid?
It can. SSI allows only $2,000 in countable assets for an individual, so an inheritance left outright can suspend benefits until it’s spent down. Leaving the gift to a supplemental needs trust instead protects eligibility.
Should I leave my loved one out of my estate plan to protect their benefits, or leave their share to a sibling?
Neither is a safe plan. Benefit programs can change or be cut, so leaving your loved one nothing is risky. A sibling holding money on an informal promise could be sued, divorce, become incapacitated or die, putting that money at risk. Leaving your loved one’s share to a properly drafted supplemental needs trust is the better approach.
How should we prepare before we start planning?
Start by confirming exactly which benefits your loved one receives. Medicaid and Social Security each include many programs with their own rules, so get a current benefit statement from Social Security and a letter from Medicaid confirming the program. It also helps to think about long-term housing, who would step in during an emergency, and your loved one’s current and future health needs.
Related Reading
- The $2,000 Rule That Changes Everything for Special Needs Families
- When Good Intentions Aren’t Enough: Protecting a Disabled Loved One’s Future
- The Day Your Child Turns 18, Your Legal Authority Ends
Other Services in Windermere
Estate Planning · Probate · Trust Administration · Guardianship · Medicaid Planning · Windermere
Supplemental Needs / Special Needs Planning Across Central Florida
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Directions to Our Office From Windermere
Talk to a Special Needs Planning Attorney Serving Windermere
Call (407) 909-1900 or send us a message to set up a consultation. Our office is open Monday through Thursday, 9 AM to 5 PM, and Friday, 9 AM to 12 PM.