Special Needs Trusts

Protecting Public Benefits Eligibility

A Special Needs Trust (SNT) is a critical legal and financial tool designed to enhance the quality of life for individuals with disabilities while preserving their eligibility for means-tested public benefits such as Medicaid and Supplemental Security Income (SSI). Rather than disqualifying a beneficiary from essential government assistance, an SNT allows settlement funds to be used for supplemental needs that improve daily living, medical care, education, and personal well-being.

When paired with a structured settlement, a Special Needs Trust creates a powerful framework that blends predictable income with fiduciary oversight and legal protection. The structured settlement can provide a steady stream of funds into the trust, while the trustee manages distributions in a way that complies with benefit regulations and prioritizes the beneficiary’s long-term interests.

This guide explains the differences between first-party and third-party SNTs, when a pooled trust may be appropriate, and how structured settlements and trusts can work together to create a durable, compliant, and compassionate financial plan for individuals with special needs.