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 Washington State, 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 cover expenses that enhance the beneficiary's quality of life while not supplanting basic needs covered by public benefits. The funds in an SNT can be used for education, recreation, counseling, and medical attention beyond the simple necessities of life. Washington State law requires that a special needs trust be established before the beneficiary turns 65 years old. The trust must be irrevocable to ensure that the assets are not considered available resources for the purpose of qualifying for government benefits. It is important to structure the trust correctly and to understand both federal law and Washington State regulations regarding such trusts. An attorney with experience in special needs planning can provide guidance to ensure that the trust operates as intended and preserves the beneficiary's access to government benefits.