Florida Probate Litigation Lawyer Blog
On June 23, 2025, an indictment was unsealed which charged two Florida men, employees at The Center for Special Needs Trust Administration, with participating in a fraudulent scheme to steal over $100 million from their employer nonprofit organization that managed funds for people with special needs and disabilities. It was alleged that over a 15-year period, the defendants worked together to take money from special needs clients and use it as their personal funds. The head of the Justice Department’s Criminal Division described the crime as “stealing $100 million dollars meant for the most vulnerable members of our society to enrich themselves.”
This case highlights two important issues: the use of special needs trusts for the benefit of disabled individuals, and the importance of choosing the right person or persons to manage such a trust.
A special needs trust is established to hold funds for the benefit of people with special needs and disabilities. These trusts are created in a manner that allows the beneficiary to remain eligible for government benefits, like Supplemental Security Income and Medicaid. This type of trust is able to help individuals with disabilities meet their particular needs, create more comfortable lives, and serve as a safety net in the event they need access to additional funds.
Like other trusts, the trustee for a special needs trust has certain duties he or she must adhere to. For example, trustees must remain loyal to beneficiaries and not participate in any self-dealing. Trustees are also required to provide accounting for the trust to show how funds are being used and maintain transparency with the beneficiaries. When trustees follow these rules and comply all the duties required by law, a special needs trust can be a great tool to support individuals with disabilities.
Another takeaway from this recent fraud case is that one should always exercise great care and discretion when selecting a trustee.
When creating a special needs trust to be managed by a corporate or nonprofit fiduciary, one should consider looking into the organization’s insurance, accounting and auditing procedures, regulatory history, as well as the fiduciary’s structure of governance. Most importantly, families seeking to set up a trust should consult with an experienced, knowledgeable attorney.
If you or someone you know may benefit from the creation of a special needs trust, contact the Miami estate planning attorneys at Chepenik Trushin LLP. We are ready, willing, and able to assist you with all of your estate planning needs. Please give us a call today at 305-981-8889.
