A Testamentary Trust is any trust created by the terms of a person’s will. A special needs trust is a trust created for the benefit of a disabled person who is receiving, or may in the future receive, needs based government benefits. Assets held by a special needs trust generally are not considered to be owned by the beneficiary of the trust. Therefore, if the beneficiary of the trust applies for Medicaid or other needs based government benefits, the trust assets will not count.
An Irrevocable Trust is a trust that can’t be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets into the trust, effectively removes all of his or her rights of ownership to the assets of the trust.