What is the purpose of a Special Needs Trust?

A Special Needs Trust is the principal component of every special needs plan.  The financial resources necessary to continue proper care for your child can be placed in a Special Needs Trust where they remain safe from lawsuits and creditors.  A Special Needs Trust also guarantees that the funds you have set aside will not be considered financial assets that would affect your child’s eligibility for government benefits.  For example, a Medicaid applicant cannot have more than $2,000 in assets in order to qualify for benefits. The assets transferred to a Special Needs Trust are not counted by Medicaid.