---
title: "What Is Special needs trust? Home Care Glossary | HomeCare.com"
description: "A special needs trust, also called a supplemental needs trust, holds money for a person with a disability. It is built to pay for extras without counting..."
url: https://homecare.preview.multisites.ai/glossary/special-needs-trust/
publisher: HomeCare.com
phone: 800-974-3458
start: https://care.homecare.com/?source=homecare.com
---

Legal and planning

# Special needs trust

A special needs trust, also called a supplemental needs trust, holds money for a person with a disability. It is built to pay for extras without counting as the person's own resources for needs-based benefits such as SSI or Medicaid. Strict rules apply.

## Why it matters for your family

Families use this tool so that an inheritance does not cost a disabled relative their benefits. The Social Security Administration states that, to qualify for its exception, the person whose assets fund the trust must be disabled under SSI rules, and other conditions apply. Trust rules differ for trusts funded by the person and by a third party. A common mistake is leaving money directly to a disabled adult. That can end benefits. Another is writing the trust without a lawyer, which can break the rules. Ask an elder law attorney who handles special needs planning. This is general information, not legal advice.

Source: [secure.ssa.gov](https://secure.ssa.gov/poms.nsf/lnx/0501120200)

[Read more: What is Elder Law and Do You Need an Elder Care Attorney?](https://homecare.preview.multisites.ai/paying-for-care/elder-law-attorney/)

## Related terms

-   [**Revocable living trust**A revocable living trust is a legal arrangement in which a person places assets in a trust and keeps the right to change it.](https://homecare.preview.multisites.ai/glossary/revocable-living-trust/)
-   [**Medicaid**Medicaid is a joint federal and state health coverage program for people with limited income and resources.](https://homecare.preview.multisites.ai/glossary/medicaid/)
-   [**Medicaid planning**Medicaid planning is the legal arrangement of income and assets so a person can meet Medicaid rules for long-term care.](https://homecare.preview.multisites.ai/glossary/medicaid-planning/)
-   [**Income cap trust (Miller trust)**An income cap trust, also called a Miller trust or income-only trust, holds part of a person's monthly income so the person can meet a state's Medicaid income limit for long-term care.](https://homecare.preview.multisites.ai/glossary/income-cap-trust/)
-   [**Elder law attorney**An elder law attorney is a lawyer who focuses on legal issues of older adults.](https://homecare.preview.multisites.ai/glossary/elder-law-attorney/)
-   [**Medicaid asset limit**The Medicaid asset limit is the cap on countable assets a person may own and still qualify for Medicaid long-term care.](https://homecare.preview.multisites.ai/glossary/medicaid-asset-limit/)

[All glossary terms](https://homecare.preview.multisites.ai/glossary/)

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