Which type of trust is specifically designed to support a beneficiary with special needs?

A special needs trust is specifically designed to provide financial support to an individual with disabilities, allowing them to receive benefits without jeopardizing eligibility for government assistance programs such as Medicaid or Supplemental Security Income (SSI). This type of trust is carefully structured to make sure that the assets held in the trust do not count against the individual's asset limits for these programs.

The special needs trust can pay for a variety of expenses that government benefits might not cover, such as certain medical expenses, education, or even recreational activities, while ensuring that the beneficiary retains access to necessary public benefits. It is an essential tool for caregivers and families seeking to ensure quality of life and financial security for their loved ones with disabilities.

Other types of trusts, such as charitable trusts, testamentary trusts, and living trusts, serve different purposes and do not specifically target the unique requirements and protections needed for beneficiaries with special needs. Charitable trusts focus on supporting charitable organizations, testamentary trusts are created through a will and take effect upon the grantor's death, and living trusts serve to manage assets during a person's lifetime and after they pass, but they do not have the specific provisions necessary to protect the financial interests of individuals with disabilities in the way that a special needs trust does.