What estate planning services does Marissa Petillo Law offer in Central Florida?

Marissa Petillo Law provides comprehensive wills, trusts, probate assistance, and estate planning tailored for Central Florida residents.

What is the difference between a will and a trust in Florida?

A will outlines asset distribution after death and requires probate, while a revocable living trust can manage assets during your life and often allows families to avoid the probate process entirely.

What is the new 2026 ABLE Act eligibility rule?

As of January 1, 2026, the ABLE Age Adjustment Act expands eligibility to individuals whose disability began before age 46. This allows millions more Americans to use these tax-advantaged accounts while maintaining their SSI and Medicaid benefits.

How much can I contribute to an ABLE account in 2026?

For the 2026 tax year, the standard annual contribution limit is $20,000. These funds grow tax-free, and the first $100,000 in the account is completely excluded from the SSI resource limit.

Do I need a Special Needs Trust if I have an ABLE account?

Yes. While an ABLE account is great for daily expenses, a Third-Party Special Needs Trust is essential for managing larger inheritances or life insurance payouts without triggering a "Medicaid Payback" requirement.

Estate Planning for a Child with Special Needs: Protecting Their Future in 2026

Feb 22

Written By Marissa Petillo

What is Special Needs Planning?

Special Needs Planning is a specialized area of estate law focused on securing the financial future of individuals with disabilities. By utilizing Special Needs Trusts and the expanded 2026 ABLE Act rules, families in Winter Garden can provide for their loved ones' quality of life without jeopardizing vital government benefits like SSI or Medicaid.

For parents in Central Florida, planning for a child with special needs is a deeply personal mission. You aren’t just planning for "who gets what"—you are building a safety net that must last a lifetime.

In 2026, expanded federal eligibility for ABLE Accounts and new Florida trust rules have changed the landscape. Dedicated special needs planning helps families in Winter Garden, Windermere, and Clermont navigate these tools to ensure their child stays protected without losing vital government benefits like SSI and Medicaid.

The Problem: The $2,000 Asset Trap

To qualify for Supplemental Security Income (SSI) or Medicaid in Florida, an individual with a disability generally cannot have more than $2,000 in countable assets.

The Risk: A well-meaning inheritance from a grandparent or a gift left in a standard Last Will and Testament can "over-fund" your child, causing an immediate loss of health insurance and monthly income.

The Solution: Assets must flow into a specialized legal structure rather than directly to the child.

2026 Update: The New ABLE Account Rules

As of January 1, 2026, the ABLE Age Adjustment Act has officially expanded who can use these tax-advantaged accounts.

Expanded Eligibility: Previously, the onset of the disability must have occurred before age 26. Now, individuals whose disability began before age 46 are eligible. This is a massive shift for adults with later-onset conditions or veterans.
2026 Limits: You can now contribute up to $20,000 per year (up from previous limits) to an ABLE account.
SSI Exemption: The first $100,000 in an ABLE account is completely ignored by Social Security. In Florida, ABLE United accounts also currently feature no Medicaid payback requirement at death—a major advantage over certain first-party trusts.

Third-Party Special Needs Trusts vs. First-Party Trusts

Understanding the "payback" rules is critical for families in Orange and Lake Counties:

Third-Party SNT (The Parental Tool): This is established through your overarching revocable living trust framework and funded with your money. There is no Medicaid Payback requirement. When your child passes away, any remaining funds go seamlessly to your other children or heirs.

First-Party SNT (The Windfall Tool): This is funded with the child’s own money (e.g., from a personal injury settlement or uncoordinated inheritance). These require a mandatory Medicaid Payback provision, meaning the state is reimbursed for care provided before the family can inherit the remainder.

Three Steps to Take for Your Central Florida Family Today

1. Coordinate Your Beneficiary Designations

Check your life insurance policies and retirement accounts. If they list your child directly, they are a "ticking time bomb" for benefit eligibility. They should point precisely to your custom Third-Party Special Needs Trust structure instead.

2. Name a "Pre-Need Guardian"

In Florida, you can formally name a guardian for your children before a crisis occurs. For parents in Winter Garden and Windermere, this prevents court delays and ensures your child is immediately cared for by someone who understands their unique daily routine.

3. Draft a "Letter of Intent"

This is a non-legal, highly practical roadmap for future caregivers. It includes your child’s detailed medical history, daily routines, sensory preferences, and your long-term vision for their life. It ensures true continuity of care when you are no longer there to provide it. You can browse more structural requirements on our Frequently Asked Questions dashboard.

Start Your Special Needs Plan in Central Florida

Don’t let an outdated structure or an uncoordinated asset jeopardize your child’s long-term security. We specialize in practical, thorough estate planning designed to fit your family's exact dynamics.

Book a Peace of Mind Planning Session

We help families in Winter Garden, Clermont, and the greater Orlando area review their legal frameworks to ensure total alignment across their home, business, and children. Schedule your session below to go over your options and our flat-fee pricing.