Protecting who you love, for life.

A special needs trust, also known as a supplemental needs trust, is a legal arrangement designed to provide for the financial and care needs of an individual with special needs or disabilities. The purpose of such a trust is to protect the individual's eligibility for government benefits, such as Medicaid and Supplemental Security Income (SSI), while still allowing them to receive additional financial support.

How Does a Special Needs Trust Work?

Let's take a closer look at the key components and mechanisms of a special needs trust:

1. Beneficiary

The beneficiary of a special needs trust is the individual with disabilities for whom the trust is created. The trust is established to enhance their quality of life and provide for their unique needs beyond what government benefits cover. This can include housing, transportation, education, healthcare, therapy, recreational activities, and more expenses.

2. Grantor

The grantor is the person or entity that establishes and funds the special needs trust. Usually, a family member, such as a parent or grandparent, wants to ensure their loved one's well-being and financial security. The grantor can also be a legal guardian, a court, or a nonprofit organization. Choosing a grantor who understands the beneficiary's needs and can be trusted to act in their best interests is essential.

3. Trustee

The trustee is responsible for managing the special needs trust and its assets. This individual or entity is entrusted with the fiduciary duty to act in the beneficiary's best interests. Their responsibilities include investing and safeguarding the trust's assets, making distributions to meet the beneficiary's needs, and ensuring compliance with legal requirements. It is crucial to select a trustee who has experience with special needs trusts and is knowledgeable about the laws and regulations governing them.

4. Trust Assets

The special needs trust can be funded with various types of assets, including cash, investments, real estate, life insurance policies, and other valuable property. These assets are owned by the trust, not the beneficiary, and are managed by the trustee on behalf of the beneficiary. Careful consideration should be given to the types of assets held in the trust to ensure they align with the beneficiary's long-term needs and goals.

5. Supplemental Nature

A special needs trust is designed to be supplemental, meaning it provides additional support and resources beyond what government benefits offer. The trust is carefully structured to ensure that distributions from the trust do not replace or duplicate the services covered by government programs. This allows the beneficiary to enjoy an improved quality of life without jeopardizing their eligibility for critical