Florida Trust Distributions & Obamacare: when Florida trustees distribute trust funds for “health”

Are you the beneficiary of a Florida trust or a trustee of a Florida trust? Maybe your rich aunt from Boca Raton, Florida set up a $1,000,000 trust to last for your lifetime and permits the trustee to distribute trust funds for your “health, education, maintenance and support.”   How does Obamacare affect the Florida trustee and Florida trust beneficiary?  How does the Affordable Care Act affect Florida trusts? Well, on March 23, 2010, President Obama signed the Affordable Care Act into law, also known as Obamacare, seeking to create lasting reforms to our health care system and to provide health care to all.  While Obamacare has come under intense scrutiny and criticism, one thing does remain true and constant:  health care and distributing trust funds for a trust beneficiary’s “health” are very important.   As the Palm Beach Post reported in today’s paper, indeed its front page headline, the Obamacare website was a meltdown.  Regardless of whether you can access the Obamacare website, here’s the “takeaway” for trustees.  If your Florida trust permits you to distribute trust funds for a beneficiary’s “health”, consider:   rather than giving money here and there, piecemeal, for a beneficiary’s heath care needs, suggest that the trust beneficiary go out and get a health plan.  You, the trustee, can review the policy and pay the service provider directly.  Having your trust beneficiaries insured makes sense and it may be easier to administer.