What is a special needs trust?

A special needs trust is specifically structured to benefit individuals with disabilities, allowing them to receive financial support while preserving their eligibility for government benefits such as Medicaid and Supplemental Security Income (SSI). This type of trust is crucial because it provides additional resources for the individual without displacing or reducing their access to essential public assistance. By setting up a special needs trust, the trustee can manage the funds and utilize them for various expenses that enhance the beneficiary's quality of life, such as education, therapy, or personal care, without jeopardizing the individual's government benefits.

The other options do not accurately capture the purpose and function of a special needs trust. For instance, a trust that ensures equal shares for all beneficiaries does not address the unique requirements of individuals with disabilities. Similarly, a trust explicitly for minors would not cater specifically to those who may have special needs, as it applies to all minors regardless of their health status. Moreover, claiming that the trust is recognized only in certain states overlooks the fact that while the laws regarding trusts can vary, special needs trusts are recognized broadly and exist under federal guidelines.