Special Needs Trusts in Massachusetts: Quick Guide
- Nicholas Adamopoulos
- Sep 2
- 2 min read
What is a Special Needs Trust?
A Special Needs Trust (SNT) is a legal tool that lets you set aside money or property for a person with a disability without affecting their eligibility for important government benefits like SSI (Supplemental Security Income) or MassHealth (Medicaid).
Why is it important?
If someone with disabilities receives money directly, they may lose benefits.
An SNT protects those benefits while still giving them access to money for extras that improve their quality of life.
Families can plan ahead, knowing resources will be managed properly.
Who manages the trust?
A trustee (a person or financial institution you choose) manages the money and makes sure it’s used only for the beneficiary.
What can the trust pay for?
The trustee can use funds for things like:
Medical and dental care not covered by insurance
Therapy, counseling, and caregivers
Education and training
Vacations, hobbies, or recreation
Clothing, furniture, and personal items
Assistive technology or special equipment
What can’t the trust do?
Give cash directly to the beneficiary
Pay for food, rent, or utilities in a way that replaces SSI benefits (this could reduce payments)
Benefit anyone other than the person with disabilities
Types of Special Needs Trusts
First-Party SNT: Funded with the beneficiary’s own money (like an injury settlement). After death, leftover funds must repay MassHealth.
Third-Party SNT: Funded by parents, relatives, or friends. No payback requirement — leftover funds can go to other heirs.
The Benefits of an SNT
✔ Protects SSI and MassHealth eligibility
✔ Keeps assets safe for the beneficiary’s lifetime
✔ Enhances quality of life with extra support and opportunities
✔ Provides peace of mind for family members
Bottom line: A Special Needs Trust helps families support a loved one with disabilities without putting their benefits at risk. It’s one of the most important planning tools available in Massachusetts.
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