Special Needs Trust

Definition: A type of irrevocable trust that is designed to provide for the supplemental needs of a disabled beneficiary who is receiving government benefits, such as SSI (Supplemental Security Income) and Medicaid. The trust must only be used to provide for care above and beyond what the government is already providing, otherwise excessive benefits provided to the beneficiary from the trust could jeopardize the beneficiary's continued receipt of benefits from the government.