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 Nevada, a special needs trust, also known as a supplemental needs trust, is a legal arrangement that allows individuals with disabilities to receive supplemental income without jeopardizing their eligibility for government benefits such as Social Security, Supplemental Security Income (SSI), Medicare, or Medicaid. These trusts are typically established by parents or guardians for the benefit of a disabled child, but they can also be set up by other family members, friends, or even the beneficiaries themselves if they are legally competent. The trust is designed to pay for expenses that enhance the beneficiary's quality of life, such as education, recreation, and medical expenses not covered by government programs, while expressly excluding basic needs like food, clothing, and shelter, which are typically covered by public assistance programs. To ensure that the beneficiary remains eligible for government benefits, the trust must be properly structured and should not give the beneficiary direct control over the assets. In Nevada, the trust must be established before the beneficiary turns 65 years old. It is important to consult with an attorney who specializes in special needs trusts to ensure compliance with both state and federal laws and to tailor the trust to the specific needs of the beneficiary.