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 Lake County 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 Lake County
Lake County has the highest share of residents with a disability of any area we serve: about 1 in 6. When money is already in a loved one’s own name, the planning works differently.
A first-party trust holds the person’s own funds, such as a personal injury settlement or an inheritance they received directly. It must be created and funded before their 65th birthday. It must also include a Medicaid payback provision, so the state is reimbursed from what’s left before anything passes to other heirs.
Because of the age-65 deadline, timing matters. If a loved one has received a settlement or inheritance in their own name, talk with us soon. We set up the trust that fits and draft it to meet the rules for that type.
Figures: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates.
From Our Podcast: Don’t Wait Until an Emergency: Planning for 18-Year-Olds
Medical calls, financial disputes, lease negotiations: at 18, all of it moves out of a parent’s legal reach. Cary Moss and Tom Moss explain on Life, Legacy & Wealth what a durable power of attorney actually covers, and why putting off the paperwork is a risk. For parents planning for a young adult with a disability, it’s a practical look at one document that may fit alongside the rest of a special needs plan.
Why Lake County 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 50 minutes from Tavares.
Frequently Asked Questions
Can we set up a supplemental needs trust now, even if our child is young?
Yes. Many parents create a stand-alone supplemental needs trust now. It allows them to name the stand-alone trust as the beneficiary in their Will or Revocable Trust. Additionally, grandparents and other relatives can then leave gifts to the trust as well.
Can I name my loved one directly on my life insurance policy?
That usually backfires. When a disabled loved one is named as the direct beneficiary of a life insurance policy or in a will, the payout counts as their own resource. It can push them over the $2,000 limit and end their SSI and Medicaid, and rebuilding eligibility is much harder. Naming a supplemental needs trust instead keeps those benefits intact.
Can the trustee ever make a payment that reduces benefits?
Sometimes. What the trust can pay for starts with the wording of the trust document, and in general it pays for things government benefits don’t already cover. A well-drafted trust also gives the trustee flexibility to decide whether a payment is worth a temporary reduction in benefits if it meaningfully improves your loved one’s quality of life.
Related Reading
- When Good Intentions Aren’t Enough: Protecting a Disabled Loved One’s Future
- The Day Your Child Turns 18, Your Legal Authority Ends
- How Can I Ensure that My Children or Dependents Are Taken Care Of?
Other Services in Lake County
Estate Planning · Probate · Trust Administration · Guardianship · Medicaid Planning · Lake County
Supplemental Needs / Special Needs Planning Across Central Florida
Orlando · Windermere · Winter Garden · Horizon West · Clermont · Ocoee · Winter Park · Orange County · Seminole County · Osceola County
Directions to Our Office From Lake County
Talk to a Special Needs Planning Attorney Serving Lake County
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.