Special Needs Trust

Many families struggle to preserve and protect assets for the care of an incapacitated family member. Special Needs Trusts have evolved to make that task easier. They are specifically designed to help the beneficiary avoid losing essential government benefits such as Medicaid, Supplemental Security Income (SSI) and mental health benefits.

Traditional trusts are considered available assets for SSI and Medicaid qualification purposes but Special Needs Trusts are a government-approved exception. They must be carefully drafted and administered to comply with strict regulations, and must be irrevocable. Properly executed, they preserve government assistance while providing additional funds to supplement the beneficiary’s needs. That can translate into improved quality of care over many years. A Haverford representative can advise you about whether a Special Needs Trust may be right for your family.

Common Types of Trusts and Their Uses

The Living Trust

Charitable Remainder Trust

Irrevocable Trust

Special Needs Trust

Wills/Estate Settlement

Ensures Investors’ Wishes Primary Primary Benefit Benefit Primary
Protects Minor Children Option No Option Option Option
Provides for Those with Special Needs Option No Option Primary Option
Ensures Smooth Transition of Wealth Primary Benefit Benefit Option Primary
Benefits Charities Option Primary Option No Option
Tax Advantages No Primary Option No Primary
Irrevocable No Yes Yes Yes Yes