What is a special needs trust?

A special needs trust holds money for a person with a disability without disqualifying them from government benefits like Medicaid or Supplemental Security Income. Because a trustee manages the funds for the person's benefit rather than handing them over directly, a properly drafted trust keeps the assets from counting against program limits. It can pay for extras those benefits don't cover, like therapies, education, or recreation. The rules are strict and depend on the trust type, so this is one area where an experienced attorney really pays off.