How Can A Special Needs Trust Be Helpful in an Orlando, Florida Divorce?
- February 13, 2020
- ontarget
- Family Law
- 0 Comments
A special needs trust can be helpful in an Orlando, Florida Divorce when the parties divorcing have a special needs child. How can the special needs trust be useful? It enables the parties to help best provide for a special needs child after the divorce. Did you know that if you have a special needs child that child support can be extended past the child’s eighteenth (18th) birthday?
A special needs trust will ensure that a special needs child does not lose their SSI or Medicaid waiver if they are eligible for such benefits; even if a parent is paying child support to that child. It allows that child’s monies that could be from such sources as child support, a personal injury suit or other lawsuits, an inheritance to be placed into a FIRST-PARTY SPECIAL NEEDS TRUST. If the money is the child’s name and that child’s asset, you must utilize a first-party special needs trust. You cannot use a Third Party Special Needs Trust. That way the trust can accumulate monies for the child; and the child can still receive the government benefits if they qualify. Then the trustee can disperse the monies as needed and required to pay for the child’s needs and essentials such as shelter and care.
This is important because it enables parents to prepare an estate plan and financially plan for and provide for; and protect for a beneficiary with special needs while preserving the right to needs-based public assistance programs, if any.
A First Party Special Needs Trust is a Self Settled Trust created with the beneficiary’s own assets-from gifts, inheritance, settlement and accidental receipt. It requires a payback clause with programs benefits reimbursed to Medicaid at beneficiary’s death.
The Safe Harbor Rules allow Three Types:
- 1382 USC (d) 4A-Disability Trust
- 1382 USC (d) 4B-Income Trust.
- 1382 USC (d) 4C-Pooled Trust.
Your divorce attorney should refer you to an attorney that prepares special needs trust to assist you with this matter.
If you have more questions regarding a Marital and Family Law matter, you may call Ann Marie Giordano Gilden at Ann Marie Giordano Gilden, P.A. at 407-732-7620 and set an initial consultation. You may also visit my website at: https//:www.AnnMarieGildenLaw.com
This article is for informational purposes only; and it does not form an attorney client privilege.