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 Oklahoma, 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 additional resources without jeopardizing their eligibility for government assistance programs such as Social Security, Supplemental Security Income (SSI), Medicare, or Medicaid. These trusts are designed to hold assets for the benefit of an individual with special needs and to pay for expenses that government benefits do not cover, without disqualifying the beneficiary from receiving those benefits. The trust's assets can be used for a variety of life-enhancing expenditures without compromising the beneficiary's access to essential government services. Oklahoma state statutes and federal law govern the establishment and administration of SNTs. It is important to note that the trust must be established before the beneficiary turns 65 years old. Parents, grandparents, legal guardians, or the court can create an SNT, and it must be properly structured to ensure it does not affect the beneficiary's government aid. An attorney with experience in special needs planning can provide guidance on setting up and managing a special needs trust in accordance with Oklahoma and federal law.