A special needs trust—also known as a supplemental needs trust—is an irrevocable trust designed to provide supplemental income for a designated beneficiary who is physically disabled, mentally disabled, has chronic illness, or has other special needs and is receiving or may be eligible to receive government benefits—such as Social Security, Supplemental Security Income (SSI), Medicare, or Medicaid.

A special needs trust is often created by parents of a disabled child, with the trust prohibiting distributions from being used for the child’s food, clothing, or shelter to ensure the child (or adult) remains eligible for related government benefits. A special needs trust must be created before the beneficiary reaches the age of 65.

In Utah, a special needs trust, also known as a supplemental needs trust, is a legal arrangement that allows individuals with disabilities to receive financial support without jeopardizing their eligibility for government assistance programs like Social Security, Supplemental Security Income (SSI), Medicare, or Medicaid. These trusts are typically established by parents or guardians for the benefit of a disabled child, but they can also be set up by other family members, friends, or even the individuals themselves if they are competent to do so. The trust is irrevocable, meaning it cannot be easily changed or revoked once it is established. The funds in the trust are managed by a trustee and are intended to cover expenses that enhance the beneficiary's quality of life beyond the basics provided by government benefits, such as education, recreation, and medical expenses not covered by insurance. It is crucial that the trust is structured properly to ensure that disbursements do not disqualify the beneficiary from receiving government aid. In Utah, the trust must be established before the beneficiary turns 65 years old. An attorney with experience in special needs planning can provide guidance on setting up and administering a special needs trust in accordance with Utah law and federal regulations.