If a family has multiple children, including one with special needs, a parent may consider establishing two separate trusts: a Special Needs Trust for the child with a disability, and a Revocable Living Trust for their other child(ren).

     A Revocable Living Trust allows a parent to leave property and personal belongings to their non-disabled child(ren) under the management of a trusted person, called the Trustee. This type of trust is especially recommended when a parent has minor children because it prevents them from receiving their full inheritance outright at age 18, which many parents consider too young for such responsibility.

     With a Revocable Living Trust, a parent can set clear instructions on how and when the inheritance should be distributed. In addition, a Revocable Living Trust avoids probate, keeping the family out of court, and can protect the child's inheritance from divorce, lawsuits, or other creditors. 

     Families should not name their child with special needs as a beneficiary of a Revocable Living Trust because it can jeopardize their eligibility for government benefits. Instead, they should be the beneficiary of a Special Needs Trust, which must meet strict federal requirements to preserve eligibility for important benefits like Supplemental Security Income (SSI) and Medicaid. These trusts are reviewed by the Social Security Administration (SSA) for compliance. To ensure continued access to benefits, the child with a disability should only be a beneficiary of a Special Needs Trust and cannot be a beneficiary of a Revocable Living Trust.