A more thorough explanation:

A special needs trust is a legal arrangement that provides funds to individuals who receive Supplemental Security Income (SSI) or Medicare benefits without affecting their eligibility for these programs. The trust is managed by a trustee who is responsible for ensuring that the funds are used for specific expenses that do not trigger SSI or Medicare caps.

For example, if a person with a disability receives SSI benefits, they may not be able to afford certain expenses that are not covered by the program, such as transportation or medical equipment. A special needs trust can provide funds for these expenses without affecting the person's eligibility for SSI.

The funds in a special needs trust can be used for a variety of expenses, such as medical care, education, and entertainment. However, they cannot be used for housing or food expenses, as these are considered basic needs that are covered by SSI and Medicare.

One of the benefits of a special needs trust is that it protects the funds from creditors, meaning that they cannot be seized to pay off debts or legal judgments. This can be especially important for individuals with disabilities who may have high medical expenses or other financial obligations.

Overall, a special needs trust can be a valuable tool for individuals with disabilities and their families, providing financial support for a range of expenses while preserving their eligibility for important government benefits.