A Special Needs Trust is a type of irrevocable trust set up specifically for disabled children. This protects and ensures that the disabled child will not be ineligible for needs-based governmental benefits such as Supplemental Security Income (SSI) and Medi-Cal after receipt of an inheritance. This is due to the trust sheltering the disabled beneficiary’s assets from general use that the needs-based benefits already cover. The assets in the trust are technically not under the control of the disabled beneficiary and thus do not count towards the beneficiary’s available resources, thereby allowing the disabled beneficiary to continue qualifying for needs-based governmental benefits even after inheriting assets that normally would disqualify the disabled beneficiary.
To set up a special needs trust or find out more information you can either consult a professional attorney or books specifically written on the topic.