What is a Special Needs Trust?

A Special Needs Trust, also known as a Supplemental Needs Trust, is a type of legal trust created for the benefit of a person with disabilities. It is designed to provide financial aid to the beneficiary, while preserving their eligibility for government benefits such as Medicaid and Supplemental Security Income (SSI). This trust allows the beneficiary to access funds that are not generally provided by public benefits programs. For example, funds from the trust can be used to pay for medical treatment or equipment not covered by government benefits. It can also provide financial security by helping the beneficiary pay for living expenses such as rent, utilities, food, transportation, and recreational activities. It is important to note that Texas Disability Planning Law requires that the trust must be set up by third parties—usually family members or friends—and not the person with disabilities themselves. The trust must also be irrevocable, meaning it can’t be changed or revoked after it has been created. Finally, the beneficiary should have a trustee who is independent and knowledgeable about disability planning, benefits, and the legal process. The trustee should be responsible for administering the trust, including managing the funds and making sure the beneficiary’s needs are met.

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What is a Special Needs Trust?

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