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 Oregon, a special needs trust (SNT), also known as a supplemental needs trust, is a legal arrangement that allows a person with a disability to receive financial benefits from the trust without affecting 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 the government programs cover, without disqualifying them from receiving such benefits. The trust assets can be used for a variety of life-enhancing expenditures without compromising the beneficiary's public benefits. Oregon law requires that a special needs trust be established before the beneficiary turns 65 years old. It is important to set up the trust correctly to ensure it meets federal and state guidelines, and it is often advisable to work with an attorney who has experience in this area of law to navigate the complex rules surrounding eligibility for government benefits and the proper administration of the trust.