Special Needs Trust Template

This Special Needs Trust is made on [Date] by and between:

Settlor / Grantor: [Full Name]
Address: [Address]

Initial Trustee: [Full Name]
Address: [Address]

Beneficiary: [Full Name]
Address: [Address]

1. Trust Name and Creation

The Settlor creates this trust under the name:

[Name of Trust]

This trust is created for the benefit of [Beneficiary Full Name] and shall be known as the Special Needs Trust described in this document.

2. Purpose of Trust

The purpose of this trust is to hold and manage property for the benefit of the Beneficiary.

This trust is intended to provide supplemental support and assistance to the Beneficiary and, where appropriate, to preserve eligibility for public or means-tested benefits to the extent allowed by law.

This trust is not intended to replace support otherwise available from public benefits, insurance, family support, or other lawful sources unless the Trustee determines otherwise under this trust.

3. Trust Property

The Settlor transfers to the Trustee the following trust property:

[Describe cash, accounts, investments, real property, settlement funds, life insurance proceeds, or other assets]

Additional property may be added to this trust at any time if accepted by the Trustee and allowed by law.

4. Irrevocable or Revocable Status

This trust shall be:

☐ irrevocable
☐ revocable during the Settlor’s lifetime
☐ otherwise as follows: [Describe]

If this trust is revocable, any revocation or amendment must be made in writing and signed as required by law.

5. Beneficiary Information

Beneficiary Name: [Full Name]
Date of Birth: [Date of Birth]

The Beneficiary is the sole primary beneficiary of this trust during the Beneficiary’s lifetime unless this document expressly states otherwise.

6. Trustee Powers and Duties

The Trustee shall manage the trust property and may take reasonable action to protect, invest, reinvest, hold, sell, lease, distribute, or otherwise administer trust assets in the best interests of the Beneficiary.

The Trustee may:

[pay approved expenses]
[retain advisers or professionals]
[open bank or investment accounts]
[purchase goods or services for the Beneficiary]
[make tax, legal, or administrative decisions related to the trust]
[exercise any other lawful trustee power consistent with this trust]

The Trustee shall act in good faith and keep reasonable records of trust activity.

7. Distributions for the Beneficiary

The Trustee may distribute income or principal for the Beneficiary’s supplemental needs, comfort, care, education, support, recreation, transportation, therapy, equipment, personal services, and other appropriate purposes.

The Trustee may consider:

the Beneficiary’s health and welfare;
the Beneficiary’s resources and other support;
the possible effect of a distribution on public benefits;
the terms and purpose of this trust.

The Trustee may make distributions:

☐ directly to the Beneficiary
☐ to providers of goods or services
☐ by reimbursement
☐ by purchase on the Beneficiary’s behalf
☐ in another lawful manner determined by the Trustee

The Trustee is not required to make equal or regular distributions and may withhold distributions if the Trustee reasonably believes a distribution would be inconsistent with this trust or harmful to the Beneficiary.

8. Public Benefits Intent

This trust is intended to be administered as a supplemental needs trust.

The Trustee should consider the effect of trust distributions on eligibility for SSI, Medicaid, or other means-tested benefits, if relevant.

No provision of this trust should be interpreted to require a distribution that would defeat the purpose of supplemental support if the Trustee reasonably determines another lawful approach is available.

9. Successor Trustee

If the Initial Trustee dies, resigns, becomes unable to serve, or is removed, the following person shall serve as Successor Trustee:

[Successor Trustee Full Name]

If the named Successor Trustee cannot serve, the next Successor Trustee shall be:

[Alternate Successor Trustee Full Name]

A Trustee may resign by written notice. A replacement Trustee may accept appointment in writing.

10. Trustee Compensation and Expenses

The Trustee shall be:

☐ entitled to reasonable compensation
☐ not entitled to compensation except reimbursement of expenses
☐ compensated as follows: [Describe]

The Trustee shall be reimbursed for reasonable expenses properly incurred in administering the trust.

11. Accounting and Records

The Trustee shall keep reasonable books and records of trust property, income, expenses, and distributions.

The Trustee shall provide an accounting or summary report:

☐ annually
☐ upon reasonable written request
☐ to the following person or persons: [Name(s)]
☐ as otherwise required by law

12. Spendthrift Protection

To the extent allowed by law, the Beneficiary may not assign, transfer, pledge, or encumber any interest in this trust, and trust assets shall not be subject to the claims of the Beneficiary’s creditors before actual distribution.

13. Special Administration Terms

Additional trust administration terms, if any:

[Insert rules about housing, education, medical equipment, transportation, caregivers, advisory committees, co-trustees, investment standards, or distribution preferences]

14. Termination of Trust

This trust shall terminate upon:

☐ the death of the Beneficiary
☐ exhaustion of trust assets
☐ another event stated here: [Describe]

Upon termination, the Trustee shall pay lawful expenses, taxes, and final administration costs before distributing any remaining property as provided below.

15. Remainder Beneficiaries and Final Distribution

After the Beneficiary’s death and after payment of proper trust expenses, the remaining trust property shall be distributed as follows:

[Remainder beneficiary names and shares]

If this trust is intended to include a payback or reimbursement provision, state it here:

[Insert state reimbursement, Medicaid payback, or other required final distribution language, if applicable]

16. Governing Law

This trust shall be governed by the laws of the state of [State].

17. Signatures

Settlor / Grantor Signature: __________________________
Name: [Full Name]
Date: [Date]

Trustee Signature: __________________________
Name: [Full Name]
Date: [Date]

Successor Trustee Signature, if desired: __________________________
Name: [Full Name]
Date: [Date]

18. Notary Acknowledgment

State of [State]
County of [County]

On this [Day] of [Month], [Year], before me, the undersigned notary public, personally appeared [Name of Signer(s)], known to me or satisfactorily proven to be the person(s) whose name(s) are subscribed to this instrument, and acknowledged that they executed the same for the purposes stated herein.

Notary Public Signature: __________________________
Name: [Notary Name]
My Commission Expires: [Date]