a trust created for a chronically and severely disabled beneficiary which supplements government benefits such as Medicaid rather than diminishing such benefits

a trust which provides for a disabled person

The special needs or supplemental needs trust, was first approved in 1975 by the Social Security Administration established rules allowing assets to be held in trust for a recipient of SSI as long as the disabled beneficiary; cannot control the amount or the frequency of trust distributions and cannot revoke the trust and use the trust assets for his or her personal benefit. The Social Security Administration's handbook Understanding SSI stated:"A trust can be set up for an SSI beneficiary." (source- http://www.achievingindependence.com/disability/SNT.htm) The special needs or supplemental needs trust is a type of trust that limits the trustee's discretion as to the purpose of the distributions. This type of trust typically contains language that distributions should supplement, but not supplant, sources of income including SSI or other government benefits. If set up by a third -party and in compliance with state guidelines, these trusts may not necessarily have to have payback provisions to government agencies.