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A Special Needs Trust is a type of trust for if you are living with a disability. This trust gives you income. It lets you have this income while keeping your needs-based public benefits, like Supplemental Security Income (SSI) and Medicaid benefits.

A Special Needs Trust lets you have assets. Your Special Needs Trust will then own the assets. This Trust lets you keep your public benefits while having assets.

A trust lets someone you trust manage assets or money for you. There are three parties involved in a Special Needs Trust:

• The Grantor is the person who funds the Trust;
• The Trustee is the person who manages the Trust. This can be anyone except the person with a disability;
• The Beneficiary is the person who receives the assets. In a Special Needs Trust, this you, the person with a disability.

The Trustee cannot give money directly to the Beneficiary. Instead, the Trustee can use the money to buy goods and services for the Beneficiary. Special Needs Trust funds are often used for things like personal care, vacations, home goods, medical and dental costs, and school expenses.

There are two types of Special Needs Trusts: self-settled and third-party. It’s important to know which one you need. The most common type is a third-party Trust, often set up by families for their children. You can learn more about the differences between these Trust types on the Special Needs Alliance website.

Special Needs Trusts can be complex, and state-specific rules may apply. It’s important to create your Special Needs Trust carefully, so talking with a lawyer is highly recommended.

There’s no exact amount of money required to set up a Special Needs Trust, but experts suggest starting with around $100,000. This helps cover the costs to set up and maintain the trust. If you have questions, speak with a financial planner.