What is a Special Needs Trust? October is Special Needs Planning Month

A Special Needs Trust (sometimes called a Supplemental Needs Trust) is designed to provide for an individual with disabilities while preserving their eligibility for public assistance programs such as Medicaid or Supplemental Security Income (SSI).

Unlike a standard trust, an SNT is structured to supplement — not replace — government benefits. These trusts follow strict rules that vary by state, but generally include:

• The beneficiary cannot directly access the trust funds.

• The trust cannot be revoked by the beneficiary.

• The individual must meet the “permanently and totally disabled” criteria under Social Security rules. Note that these rules differ between adults and children.

• The trustee must avoid distributions that could jeopardize government benefit eligibility.

Because of these rules, proper legal drafting and ongoing administration are critical.

A Special Needs Trust safeguards your loved one’s financial security and quality of life. Government programs often only cover basic needs like housing, food, or medical expenses — but an SNT can fund additional care, education, recreation, and other resources that enhance overall well-being.

Without proper planning, a well-intentioned inheritance or gift could disqualify your beneficiary from vital government benefits. An SNT ensures support continues seamlessly — both emotionally and financially — long after you’re gone.

An SNT is often recommended for:

• Parents or guardians of a child with a disability.

• Siblings or relatives supporting a disabled adult family member.

• Individuals expecting an inheritance or settlement who receive government assistance.

If your family’s situation involves any of these, it’s worth consulting with a financial advisor and an experienced estate planning attorney.

At Mission Wealth, our advisors collaborate with you to understand your family’s long-term goals and values. We coordinate with estate planning attorneys and corporate trustee services to ensure your trust is properly established and administered.

Our goal is to help you build a comprehensive legacy plan — one that protects your loved ones and provides peace of mind for generations to come.

If you’re ready to explore special needs or legacy planning, schedule a complimentary strategy session today.