Disability planning is a priority for many Florida residents. Whether you are in the beginning stages of building your estate plan or you already have your affairs in order, you might want to consider the benefits of disability planning. Even if you do not have a disability, this could easily change in the future as you age. When a disability does occur, it makes sense to have a contingency plan in place. If you are already disabled, this aspect of estate planning is even more important. You might also engage in disability planning if you have a dependent family member with special needs. Discuss these subjects in more detail with a Florida estate planning attorney. 

What is Disability Planning?

Disability planning is a general phrase that refers to the aspects of your estate plan that involve disabilities. First, you might be approaching the estate planning process as someone who has a disability of some kind. Perhaps you want to preserve your access to Medicaid while simultaneously protecting your assets. In this situation, Medicaid planning strategies may help you qualify for government assistance while still maintaining your general net worth. These strategies may also prove beneficial if you have recently developed a disability. 

You might also need to consider disability planning if you have a disabled beneficiary. This might be an adult disabled child, a disabled spouse, a disabled sibling, or some other loved one whom you care for and feel responsible for. Various estate planning strategies could help you ensure financial support for your disabled loved one, even after you are gone. 

Do I Need a Special Needs Trust?

If you have a loved one with special needs, you may be eligible to set up a special needs trust. As its name suggests, this type of trust is specifically designed for people with special needs. When you set up this trust, you can name your disabled relative as a beneficiary. When you pass away, your special needs relative will continue to receive financial support through the trust for the foreseeable future. 

The beauty of a special needs trust is that it does not jeopardize the beneficiary’s eligibility for Medicaid and other “needs-tested” government benefits. As long as you create the trust properly with help from an experienced attorney, the trust should allow you to shelter assets as your loved one continues to receive medical care through Medicaid. 

Your loved one can then use trust assets for discretionary spending and other non-medical living expenses. These might include rent, utilities, food, entertainment, and other costs. In this way, a special needs trust helps maintain your loved one’s standard of living while also ensuring access to top-level medical care. 

When planning for a disabled loved one, it is important to choose guardians, trustees, and other caregivers carefully. These are the people who will be responsible for your disabled loved one after you’re gone, and you can designate these overseers in your estate plan. 

Do I Need a Medicaid Trust?

If you are dealing with a disability yourself, you might want to consider a Medicaid trust. As its name suggests, this type of trust is specifically designed for those who want to get access to Medicaid. What makes this trust distinct is the fact that it preserves your eligibility for Medicaid, even if you would normally be disqualified due to your net worth.  

There are various examples of trusts that could help with Medicaid planning. These include pooled trusts and qualified income trusts. It is important to choose the right option based on your unique circumstances, and you can discuss your choices with an estate planning lawyer. 

When planning for Medicaid and other disability-related strategies, you might need to consider the relevant “lookback periods.” If you are beginning the estate planning process in advance, you may have more freedom to choose between various options. This is because of the five-year lookback period. As long as you facilitate certain transactions five years or more before applying for Medicaid, it may be easier to qualify. Medicaid, based on Supplemental Security Income (SSI), has an even shorter lookback period of three years, giving you less time to plan your strategies. 

Other Ways to Protect Assets While Dealing With a Disability

Your lawyer may be able to help you assess many other disability-related estate planning strategies. There are all kinds of ways to protect your assets and your health in this scenario. Some strategies revolve around the homestead exemption. You can transfer some of your wealth into your primary residence to protect your assets, qualify for Medicaid, and age in place. 

Many Florida seniors decide to spend excess funds on home renovations, thereby reducing their on-paper net worths and making it easier to qualify for Medicaid. Transferring assets into your primary residence may also protect wealth from probate. If two spouses have joint tenancy of a home and one spouse dies, the property passes to the surviving spouse automatically without going through probate. 

Home renovations can also make it easier for elderly and disabled individuals to live comfortably with minimal assistance. Examples include bathroom handles, stairlifts, nonslip surfaces, motion-sensing lighting, smart home technology, and much more. 

It always makes sense to discuss your unique disability with a lawyer before getting started with the planning process. Each disability is unique, and your lawyer can help you take a personalized approach to estate planning, Medicaid planning, and any other related goals. 

Can a Florida Estate Planning Attorney Help With Disability Planning?

An experienced Florida estate planning attorney may be able to help with disability planning. That said, it makes sense to choose a lawyer who has specific experience with special needs trusts, Medicaid, and related concepts. Not all estate planning lawyers focus on these areas, and you may want to be selective when searching for a lawyer. Disabilities can vary tremendously, and you might want to discuss your unique challenges and priorities during a consultation with one of these lawyers. Contact The Elderly Care Law Firm at (305) 615-5430 to continue this conversation.