It has become common knowledge that disability rates have steadily risen among children, which makes the need to understand the importance of a Special Needs Trust (SNT) even more significant. Defined, a SNT Protects the rights of the disabled individual to maintain their eligibility for public assistance benefits. If you left your disabled beneficiary money or property via your outright trust or will without the protection that a SNT provides, they would be disqualified from receiving government benefits, like social security income among others. The disqualification could last until your special needs beneficiary spends or discards the left money or property.
The one situation where the loss of benefits may not matter is if the sum of money or property is large enough to support your disabled recipient for their lifetime. However, this would be a rare occurrence.