What is a special needs trust?

A special needs trust (also known as a supplemental needs trust) is a type of trust designed to help individuals with disabilities manage and financially support themselves without losing their eligibility for government benefits like Medicaid and Supplemental Security Income (SSI). The trust is managed by a trustee, who is selected by the person with the disability or their family, and is established to provide for the financial needs of the beneficiary while preserving their eligibility for government benefits. The trust is funded with the assets of the disabled individual, either through their family, loved ones, or a court settlement. These assets are transferred to the trust, which can be used to pay for items or services that may be needed by the individual, but are not covered by government assistance programs. Some examples of these expenses include medical care, durable medical equipment, home modifications, aids for daily living, education, or recreation. The trust can also be used to provide a source of income for the beneficiary, like a monthly allowance. A special needs trust helps individuals with disabilities maintain financial independence and self-sufficiency while still providing needed assistance with medical care and other expenses. In Texas, special needs trusts must be set up in accordance with Disability Planning Law, which can vary depending on the state.

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What is a special needs trust?

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