A Special Needs Trust can be drafted to meet the needs of the individual child. The instructions in the Special Needs Trust should also be designed so that the child does not become ineligible to receive federal or state benefits to which the child may be entitled. This can be accomplished if the trustee’s power is discretionary and the trustee can withhold or distribute funds depending on the child’s condition and the availability of state or federal funds, within the restrictions imposed by state and federal law.
The Special Needs Trust may contain instructions that surplus income may be accumulated if necessary to avoid disqualification for government benefits. The trust should also contain provisions that prohibit the child from transferring income or principal of the trust to any person.