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 Florida, 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 like Social Security, Supplemental Security Income (SSI), Medicare, or Medicaid. These trusts are designed to provide for the extra and supplemental needs of the beneficiary, beyond what government benefits cover, without disqualifying them from receiving such benefits. Florida law requires that a Special Needs Trust be irrevocable and that it be established for the benefit of an individual who is under 65 years old at the time the trust is created. The trust is typically funded by parents or other family members and must be carefully structured to ensure that disbursements do not cover food, clothing, or shelter, which could otherwise affect the beneficiary's eligibility for government programs. An attorney with experience in special needs planning can provide guidance on how to properly set up and administer a Special Needs Trust in accordance with both Florida statutes and federal law.