A special needs trust—also known as a supplemental needs trust—is an irrevocable trust designed to provide supplemental income for a designated beneficiary who is physically disabled, mentally disabled, has chronic illness, or has other special needs and is receiving or may be eligible to receive government benefits—such as Social Security, Supplemental Security Income (SSI), Medicare, or Medicaid.

A special needs trust is often created by parents of a disabled child, with the trust prohibiting distributions from being used for the child’s food, clothing, or shelter to ensure the child (or adult) remains eligible for related government benefits. A special needs trust must be created before the beneficiary reaches the age of 65.

In Alaska, a special needs trust (SNT), also known as a supplemental needs trust, is a legal arrangement that allows a person with a disability to benefit from assets held in the trust without jeopardizing their eligibility for government assistance programs such as Social Security, Supplemental Security Income (SSI), Medicare, or Medicaid. These trusts are typically established by parents or other family members for a child with disabilities and are designed to provide for the extra and supplemental needs of the individual, beyond what government programs cover. The trust's assets are not considered countable resources for the purpose of qualifying for public benefits because they are not directly available to the beneficiary. The trust must be irrevocable to ensure that the beneficiary does not have direct access to the funds, which could disqualify them from government benefits. In Alaska, as in other states, the trust must be established before the beneficiary turns 65 years old. It is important to set up the trust correctly to comply with both federal and state regulations, and consulting with an attorney experienced in special needs planning is advisable to ensure that the trust operates as intended without affecting benefit eligibility.