Special Needs Trust
Provide for loved ones without affecting government benefits
Why People Use It
Parents of children with disabilities use special needs trusts to provide additional resources without disqualifying them from government benefits like SSI or Medicaid. The trust supplements—doesn't replace—public benefits.
Who This Is For
- Parents of children with disabilities
- Families with members receiving SSI or Medicaid
- Guardians of individuals with long-term care needs
- Anyone wanting to leave inheritance without affecting benefits
- Siblings or family members planning for disabled relatives
Key Benefits
Preserve Government Benefits
Trust assets don't count toward SSI/Medicaid eligibility thresholds, preserving essential benefits.
Supplemental Quality of Life
Fund things government benefits don't cover: entertainment, travel, personal care items, education, hobbies.
Long-Term Security
Provide for your loved one's needs for their entire lifetime, even after you're gone.
Trustee Oversight
Independent trustee ensures distributions comply with regulations and truly benefit your loved one.
Real World Scenario
Planning for Michael
The Situation
Sarah and Tom have an adult son Michael with Down syndrome. Michael receives SSI and Medicaid, which cover his basic needs. When Tom's mother wanted to leave Michael $100,000 in her will, they realized a direct inheritance would disqualify him from benefits.
The Outcome
Grandma's inheritance went into a special needs trust instead. Michael continues receiving SSI and Medicaid for basics, while the trust pays for vacations, a new computer, special therapy equipment, and experiences that make his life richer—all without affecting his benefits.
Core Conditions
- Trust assets don't count toward benefit eligibility
- Trustee discretion over distributions
- Supplemental needs covered (not basic support)
- Compliant with federal and state regulations
You decide the conditions, verification methods, and level of control.
How It Works
Determine Beneficiary Needs
Identify what government benefits the beneficiary receives and must preserve.
Structure Compliant Trust
Create a trust that supplements rather than replaces government benefits.
Fund Appropriately
Contribute assets that will be used for supplemental needs.
Trustee Manages Distributions
Independent trustee ensures distributions don't affect benefit eligibility.
Why a Trust?
| Alternative | Limitation | Trust Advantage |
|---|---|---|
| Direct Inheritance | Disqualifies beneficiary from SSI/Medicaid if over $2,000 | Trust assets don't count toward benefit limits |
| ABLE Account | Annual contribution limits; lifetime cap of $100,000 before affecting SSI | No contribution limits; no cap on trust assets |
| Disinherit Entirely | Loved one receives nothing; depends entirely on government benefits | Provide supplemental quality of life while preserving benefits |
Common Questions
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Not legal advice. Subject to KYC/AML. Availability varies by jurisdiction.