A trust is a beneficial arrangement where assets are transferred to a third party to be held for the beneficiary and managed by a trustee. Trusts may be used for estate planning, charitable giving, asset management, and tax planning. Depending on local tax codes, it may provide immediate tax relief to the trust's grantor. Trusts may also be used as an abusive tax strategy to allow particular beneficiaries to continue receiving government benefits after a significant inheritance.

Special Needs Trusts, sometimes referred to as supplemental needs trusts (for federal legal purposes) or special needs sheltered trusts (for California lawful purposes), are expressly set up to allow parents and other caregivers to provide for the ongoing care of someone who has a disability.

Special Needs Trusts are designed to provide for someone's disability and ensure they receive the necessary care and resources. For someone on government assistance, a special needs trust ensures that government programs continue to receive funding. A special needs trust also allows the person to receive the funds they need without causing a loss of benefits.