What is a special needs trust?

A special needs trust is a type of trust that can be created to provide for the care of an individual with special needs or a disability. This type of trust can be used to supplement the services and benefits that the individual may already be receiving from the government, such as Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI). A special needs trust is different from a traditional trust because it is specifically designed to meet the ongoing needs of an individual with special needs and to supplement any government aid they may be receiving without influencing their eligibility for government assistance. This type of trust is often funded with money that would otherwise be given for items that are not covered by government programs, such as medical care, special equipment, and educational or recreational activities. In Minnesota, a special needs trust can be created by the parent, grandparent, guardian, or court of the individual with the disability. The trust must include specific language about the purpose of the trust and the type of needs the individual may require. It is important to note that the trust must be irrevocable in order for it to comply with the rules of the government assistance program. Creating a special needs trust is an important tool to ensure that the individual with special needs or a disability will be provided for long after the creator of the trust is gone. It is important to speak to a qualified and experienced attorney in order to create a special needs trust that meets the criteria of the government assistance program and meets the specific needs of the individual.

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