A special needs trust, also known as a supplemental needs trust, is a type of trust that is designed to provide for the needs of a beneficiary who has a disability or special needs. The trust is established to supplement, but not replace, any government benefits the beneficiary may be receiving, such as Supplemental Security Income (SSI) or Medicaid.
The assets in the trust are not considered to be owned by the beneficiary, and therefore do not affect the beneficiary’s eligibility for government benefits. However, the trust can be used to pay for items and services that are not covered by those benefits, such as medical equipment, home modifications, or therapy services.
It’s important to note that creating a special needs trust can be quite complex and it may be a good idea to consult a professional, such as an attorney or a financial advisor, who specializes in this area. They can help to ensure that the trust is set up correctly and that it will be administered in the best interests of the beneficiary.