Home Ownership for Individuals with Disabilities
Using a Special Needs Trust to Purchase a Home
If a home is purchased in the name of a Special Needs Trust (SNT), the trust can buy a house for a beneficiary with disabilities without affecting their eligibility for public benefits. The home, owned by the SNT, is not considered a resource of the beneficiary and will not impact their ability to qualify for government assistance.
Beneficiaries are treated as residing in their own home, not as receiving shelter, which helps protect eligibility for benefits. SNT funds used for home maintenance (like repairs or improvements) are not considered income, and payments by the SNT for expenses such as property taxes and utilities are also excluded from income calculations for benefits.
Beneficiary Owns Home as an Individual
A beneficiary may also own a home individually. The benefit of this option is that the home is not subject to Medicaid payback rules that apply to SNTs. However, the property may be subject to Medicaid recovery after the beneficiary’s death, as Florida law allows creditors to file a claim against the estate within two years. If the beneficiary cannot maintain the home financially, this option may not be practical. Additionally, an individual or minor with a disability should not own a home alone unless fully competent.
Trust and Parents Own Home
In some cases, the home is co-owned by the trust and the beneficiary’s parents. This allows both parties to have rights to the property and can help address certain family needs. However, the downside is that Medicaid payback may apply to the portion of the home owned by the trust after the beneficiary’s death.
Advice You Can Rely On
Navigating home ownership for individuals with disabilities requires careful legal planning. If you want to learn more about options that protect eligibility for government benefits and provide long-term security, contact Shalloway & Shalloway, P.A. at (561) 686-6200 or visit shalloway.com.
