What is a special needs trust?

Attorney Robert Hidock: A special needs trust for the disabled under 65. That is someone that is under 65 and they are receiving Social Security disability and are on Medicaid. They have an inheritance. If they get their inheritance, they're going to get kicked off of those programs. If somebody that might need Medicaid for the rest of their life, if they accept the inheritance, they're not going to have it.

We can create this special trust where the trustee would basically take care of that person, so they'll always keep their benefits. They will have the money that a trustee will be watching for them. They'll be allowed to spend that money on them. They can buy them a house, they can buy them a car if there is enough money in the account. Best of all, when the person passes, the money does not go to the state, it goes to their beneficiaries.

Attorney Tom Olsen: If you've got a child that's on Medicaid disability, then you're not going to leave your money to that child outright. You're going to instead put it into a special needs trust so that your child has the benefit of that money, in addition to the governmental benefits that they receive. Then someday when the child passes away, that money gets passed on to either that child's children or your other children.

Attorney Robert Hidock: Absolutely.

Attorney Tom Olsen: Special needs trust, folks, that's a great tool to protect and keep your children on their governmental benefits at the Olsen Law Group in Orlando.