Special Needs Trusts for Your Child in Palm Beach, FL

For many Palm Beach families, the special needs trust is the heart of the entire estate plan. It allows you to set aside money for a child with a disability without disqualifying them from the public benefits that fund essential care. Every other document, your will, your revocable trust, your beneficiary designations, is usually built to feed into this trust correctly.

The Core Problem It Solves

Means-tested benefits such as Medicaid and Supplemental Security Income limit how much a recipient can own. A direct gift or inheritance can push a child over those limits and interrupt coverage. A special needs trust holds assets for your child’s benefit without those assets counting as the child’s own, so the benefits continue and the trust pays for extras that improve quality of life.

What the Trust Can Pay For

A properly drafted special needs trust supplements, rather than replaces, public benefits. Depending on the trust terms and current program rules, it can fund things benefits do not fully cover, such as therapies, specialized equipment, education, recreation, travel, and personal care. The trustee manages these distributions carefully to avoid reducing the benefits the child receives.

Third-Party Versus First-Party Trusts

There are two broad types. A third-party special needs trust is funded with someone else’s money, typically a parent’s or grandparent’s, and is the kind most families create as part of estate planning. A first-party special needs trust holds assets that belong to the person with a disability, such as a personal injury settlement or a direct inheritance, and is subject to additional rules, including Medicaid payback requirements at the beneficiary’s death. Knowing which type you need is a critical early decision.

Choosing the Right Trustee

The trustee controls distributions and must understand both your child’s needs and the benefit rules that govern them. Some families name a trusted relative; others choose a professional trustee or a combination, pairing a caring family member with professional administration. Whoever serves should be able to make careful, benefit-aware decisions for many years, often well beyond your own lifetime.

How It Fits With Florida Planning

A special needs trust does not stand alone. Your Florida will can pour a child’s share into it, your revocable trust under Chapter 736 can direct assets to it, and beneficiary designations on life insurance and retirement accounts can name it instead of naming your child directly. Because Florida has no state estate or inheritance tax, the planning focus stays squarely on protecting benefits and ensuring lifelong care. Avoiding probate through these tools also keeps funds flowing to the trust without court delay.

Writing a Letter of Intent

Alongside the legal documents, many parents prepare a letter of intent. It is not a binding legal document, but it gives future trustees and caregivers a detailed picture of your child’s daily routines, medical history, preferences, and goals. This roadmap is invaluable when you are no longer there to explain.

Consult a Florida Attorney

This page is general information, not legal advice for your family. The rules governing special needs trusts and public benefits are detailed and change over time. Work with a licensed Florida estate planning attorney to choose the right type of trust and integrate it with your overall plan.