Individual Special Needs Trusts

Comprehensive Trust Services from Experienced Professionals

Individual special needs trusts are an important focus of FND Trust Services, as they can provide an ideal way of preserving assets and protecting eligibility for public benefits. We can help you understand your options and how individual special needs trusts work so you can make an informed decision on this crucial matter. Our knowledgeable, responsive team proudly serves beneficiaries, their representatives, and their families in Florida and throughout the U.S.

What Is an Individual Special Needs Trust?

Did you know that a person with a disability may be rendered ineligible for Medicaid, Supplemental Security Income (SSI), or other public benefits if they receive an inheritance or simply accumulates too much money in their account? Any amount over $2,000 in assets will negatively affect benefit eligibility. An individual special needs trust offers a way to protect the assets of a person with a disability while preserving their ability to receive public benefits. Funds can be distributed, as needed, to pay for extra care beyond what the government provides.

An individual special needs trust may offer a way to pay for:

• Personal care attendants
• Home furnishings or modifications
• Out-of-pocket medical or dental care
• Education
• Recreation and vacations
• Transportation
• Rehabilitation
• Many other ways of improving the quality of life for a person with a disability

FND Trust Services can administer first-party special needs trusts to protect the assets of a person with a disability, or third-party special needs trusts established by family members to give or leave assets to a person with a disability. Available in Florida and throughout the U.S., our special needs trust services are personalized, efficient, and transparent.

Your Guide to Special Needs Trust Terms

There are a lot of new terms you may hear around the topic of special needs trusts. FND Trust Services wants to make sure you have a full understanding of what you are undertaking.

Accounting - This refers to an explanation of the trust activity over a certain period of time. This time period is usually a year, although it can vary.

Beneficiary - The beneficiary is the person benefiting from the trust, typically the special needs individual.

Bonds/Sureties - A bond helps protect the beneficiary against negligence, loss of trust assets, or fraud by the trustee. It is sometimes required when family members are serving as the trustees.

Compensation - State law dictates compensation for trustees, reportable as taxable income.

Grantor - A grantor is also known as a settlor or trustor. This person is the one who creates and funds the trust.

Inter Vivos - All first-party and some third-party trusts are inter vivos. This is Latin for “during life” or “among the living”. It means that the trust was established while the grantor (the person who creates the trust) was alive.

Irrevocable and Revocable - Irrevocable trusts cannot be changed, and revocable trusts can be changed at any time. First-party special needs trusts are always irrevocable while third-party special needs trusts can be either revocable or irrevocable.

Remainder Beneficiary - Remainder beneficiaries receive any remaining trust assets upon the death of the beneficiary or the end of the trust.

Schedule A/Schedule of Assets - This is a record of all assets owned by your trust.

Successor Trustee - When the initial trustee is unable to serve any longer, the successor trustee will take over. The successor is nominated in the trust agreement.

Testamentary - This is a type of third-party special needs trust that is funded only when the creator of the last will and testament dies.

Trust Estate - The trust estate includes assets placed into the trust and income that was earned from invested trust assets. This is for the benefit of the beneficiary.