Special Needs Trust (SNT)
What is it?
A Special Needs Trust (also called a Supplemental Needs Trust) provides for a beneficiary with disabilities without disqualifying them from government benefits like SSI and Medicaid. The trust supplements—but does not replace—government assistance, paying for things Medicaid and SSI don't cover: education, recreation, personal care items, travel, and quality-of-life expenses.
Why is it important?
Even a small inheritance paid directly to a person receiving SSI or Medicaid can disqualify them from benefits, potentially costing far more than the inheritance is worth. An SNT preserves eligibility while dramatically improving quality of life. This is essential for any family with a member who has special needs—whether the disability is physical, intellectual, or mental health-related.
Example Language
This Trust is established for the supplemental benefit of [Beneficiary]. Distributions shall supplement, not supplant, any government benefits. The Trustee may distribute for: education, therapy, recreation, travel, personal care items, electronics, vehicle modifications, and other needs not covered by government programs. The Trustee shall not make distributions that would reduce or eliminate SSI or Medicaid eligibility.