Delaware Wills and Trusts Practice Test 2025 – Complete All-in-One Guide to Mastering Your Exam!

A special needs trust is specifically designed to provide financial support to an individual with disabilities while ensuring that they do not lose eligibility for government benefits such as Medicaid or Supplemental Security Income (SSI). This type of trust allows the beneficiary to receive additional financial resources that can supplement their needs without exceeding the income and asset limits set by government programs.

The key aspect of a special needs trust is that it is structured to exclude the trust assets when the government assesses the individual's financial eligibility for these benefits. By providing funds for services and items that are not covered by government assistance, a special needs trust enhances the quality of life for the beneficiary while maintaining their essential support from public programs.

Other options provided do not accurately describe a special needs trust. For example, some options imply restrictions or conditions that do not align with the primary purpose of this type of trust. Understanding that the goal of a special needs trust is to provide additional resources without jeopardizing essential government benefits is crucial for grasping the function of this legal instrument.