A Special Needs Trust is not for everyone.
A special needs trust is a socialized estate planning system that is setup so that persons with disabilities can receive funds to provide for their needs beyond that provided by Social Security Disability payments or Medicaid. A disabled person with a special needs trust can still qualify for SSDI and/or Medicaid benefits. The funds from the trust do not replace those provided under those programs, instead they supplement the funds to pay for items not provided under those programs.
There are two main kinds of Special Needs Trusts: The first is when the disabled person receives or inherits money and this type of special needs trust requires court approval. The second type is when a third party provides money to the disabled person for their benefit.
This video helps explain the purpose and functioning of a special needs trust:
Proper planning is vital to ensure the disabled person is able to receive the funds, whether they inherited them or they come from a third party such as a living parent, and still remain qualified for their benefits. A special needs trust is the ideal way and in some cases only way to achieve that goal.