Special Needs Trust
A special needs trust is created to ensure that beneficiaries who are disabled or mentally ill can enjoy the use of property which is intended to be held for their benefit. Source
What Does a Special Needs Trust Do?
Special needs individuals under the age of 65 are eligible for Medicaid, Supplemental Security Income, and other benefit programs as long as they do not have more than $2,000 in their own name. The purpose of a special needs trust is to provide a source of funds without disqualifying the beneficiary from receiving those government benefits. The money in their own name stays at the $2,000 or below level, they receive their government benefits to pay for their basic care, and they have the advantage of getting additional money from the trust at the trustee’s discretion, to pay for care over and above the basics, without endangering their eligibility for government entitlements. Source