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 Louisiana, a special needs trust, also known as a supplemental needs trust, is a legal arrangement that allows a person with a disability to receive income without jeopardizing their eligibility for government assistance programs such as Social Security, Supplemental Security Income (SSI), Medicare, or Medicaid. These trusts are designed to provide funds for expenses that enhance the beneficiary's quality of life while not supplanting basic needs covered by public benefits. The trust assets can be used for a variety of life-enhancing expenditures without affecting eligibility for benefits. Louisiana law requires that a special needs trust be established before the beneficiary turns 65 years old. It is important to ensure that the trust is properly structured and administered to comply with both federal and state regulations, as improper management can lead to a loss of benefits. An attorney with experience in special needs planning can provide guidance on setting up and managing a special needs trust in accordance with Louisiana law and federal regulations.