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 Arkansas, a special needs trust, also known as a supplemental needs trust, is a legal arrangement that allows individuals with disabilities to receive financial support without jeopardizing their eligibility for government assistance programs. These trusts are designed to provide funds for expenses that enhance the beneficiary's quality of life beyond the basics covered by government benefits, such as education, recreation, counseling, and medical attention beyond the simple necessities of life. Arkansas follows the federal guidelines for special needs trusts, which require that the trust be established for the benefit of individuals under 65 years of age and that it be managed by someone other than the beneficiary. The trust must be irrevocable to ensure that the assets are not considered available resources when determining eligibility for government benefits. It is important to set up the trust correctly to avoid any negative impact on the beneficiary's government aid. An attorney with experience in special needs trust can provide guidance on the specific requirements and help establish a trust that complies with both Arkansas and federal law.