Special Needs Trust - Connecticut

CONNECTICUT SPECIAL NEEDS TRUST

Third party funded discretionary trust

Trust name: [TRUST NAME] Special Needs Trust

Date: [DATE]

Settlor: [FULL LEGAL NAME], [ADDRESS]

Initial trustee: [FULL LEGAL NAME], [ADDRESS]

Primary beneficiary: [FULL LEGAL NAME], [ADDRESS]

The Settlor transfers to the Initial Trustee the Settlor-owned property identified in Schedule A, using the separate transfer document stated there where required. The Trustee acknowledges receipt of the property actually delivered and agrees to hold it as trustee of [TRUST NAME] Special Needs Trust under this agreement. This is an irrevocable inter vivos trust for the definite Primary Beneficiary and the remainder beneficiaries named in Section 6. See Conn. Gen. Stat. §§ 45a-499v and 45a-499w.

1. Third party funding only

The Settlor and any later contributor must use assets owned by someone other than the Primary Beneficiary or the Primary Beneficiary’s spouse. The Trustee shall decline a proposed contribution from either of them and seek benefits counsel’s advice before accepting property whose ownership is uncertain. SSA POMS SI 01120.200 defines a third party trust by this funding source and calls for renewed analysis if the beneficiary or spouse later contributes assets. The Trustee shall keep source and transfer records for each contribution.

2. Purpose and irrevocability

This trust is intended to supplement the Primary Beneficiary’s care and opportunities through discretionary distributions. The Settlor reserves no unilateral right to revoke, amend, or reclaim trust property. A private agreement does not itself replace the grounds and findings for modification or termination under Conn. Gen. Stat. § 45a-499ee or another applicable section. This trust promises no particular SSI, Medicaid, housing, or other benefit result; the governing program decides eligibility and the effect of each payment.

3. Discretionary distributions

During the Primary Beneficiary’s lifetime, the Trustee may distribute income or principal to or for that person in amounts and at times the Trustee considers suitable for care, education, therapies, transportation, services, recreation, and other needs. No distribution is mandatory. The Primary Beneficiary cannot direct the Trustee to make a distribution, withdraw principal, or pledge trust property.

Before making a payment, the Trustee shall consider its possible effect on benefits and may consult a qualified benefits adviser. The Trustee may pay a provider directly when appropriate. A payment may still be made after an informed determination that the benefit to the Primary Beneficiary justifies a possible reduction in public assistance. The Trustee shall record the reason and payment method. This discretion belongs to the Trustee and remains subject to the trust’s purpose and fiduciary duties.

4. Trustee succession and administration

The Initial Trustee accepts by signing below. A named successor may accept by signing an acceptance or another act permitted by Conn. Gen. Stat. § 45a-499rr. If the Initial Trustee dies, resigns, or otherwise ceases serving, the first willing and able person in this order becomes successor:

1. [FIRST SUCCESSOR, ADDRESS]
2. [SECOND SUCCESSOR, ADDRESS]

If neither can serve and no cotrustee remains, fill the vacancy by the remaining routes in Conn. Gen. Stat. § 45a-499uu. A Trustee of this inter vivos trust may resign without court approval by giving at least thirty days’ notice to qualified beneficiaries, the living Settlor, and all cotrustees under Conn. Gen. Stat. § 45a-499vv, or may seek court approval.

The Trustee shall safeguard and identify trust property, keep it separate, preserve contribution and payment records, and administer it prudently under Conn. Gen. Stat. § 45a-499ddd. Subject to fiduciary duties, the Trustee may hold, invest, insure, sell, lease, and otherwise manage trust property, employ advisers, pay proper expenses, and distribute cash or property in kind under Conn. Gen. Stat. § 45a-499mmm and other applicable law. The Trustee may receive reasonable compensation and reimbursement of proper expenses.

The Trustee shall give the information and notices required by Conn. Gen. Stat. § 45a-499kkk. At least annually and on termination, the Trustee shall send a report to current beneficiaries and to other qualified beneficiaries who request one. The report shall identify property, liabilities, receipts, disbursements, Trustee compensation, and feasible asset values. Silence after a report is not approval or a release.

5. Additional contributions

The Trustee may accept or decline later third party contributions. A contribution becomes trust property when effectively transferred and accepted. A schedule entry does not replace an asset’s required deed, title change, assignment, or other transfer act. Property belonging to the Primary Beneficiary or spouse must not be mixed into this instrument.

6. End of trust and remainder

At the Primary Beneficiary’s death, the Trustee shall pay proper trust expenses and enforceable obligations chargeable to the trust, then distribute all remaining property in the shares below. Complete shares totaling 100% and identify an alternate for each.

If no named remainder beneficiary or alternate survives, distribute the entire balance to [ULTIMATE BENEFICIARY OR CHARITY, ADDRESS]. This agreement creates no automatic government reimbursement clause. Any enforceable claim against trust property must be handled under applicable law.

7. General terms

Connecticut law governs this trust. Mandatory rules under Conn. Gen. Stat. § 45a-499e control any inconsistent term. No term waives a legally available remedy, excuses a Trustee’s breach, requires arbitration, or caps all Trustee liability at the trust property’s value. If a term is unenforceable, the remaining terms continue as far as they can carry out the Settlor’s lawful intent.

8. Signatures

The Settlor signs intending to create and fund this irrevocable trust. The Initial Trustee signs to accept the trusteeship and the property actually delivered.

Settlor: [FULL LEGAL NAME]

Signature: ______________________________

Date: [DATE]

Initial Trustee: [FULL LEGAL NAME]

Signature: ______________________________

Date: [DATE]

Successor trustee acceptance (sign only on taking office): I accept the trusteeship and agree to administer property received under this agreement.

Successor trustee: [FULL LEGAL NAME]

Signature: ______________________________

Date: [DATE]

Schedule A — initial third party property

The Settlor identifies the property actually owned and transferred. Do not list the Primary Beneficiary’s or spouse’s property.

Settlor’s signature confirming Schedule A: ______________________________

Trustee’s receipt of property delivered: ______________________________

Date: [DATE]

Sources and references

• Connecticut General Assembly, current Chapter 802c, including the sections cited in this agreement.
• SSA POMS SI 01120.200 (third party trust definition and funding analysis).
• Connecticut 2026 Supplement index (Title 45a lists chapters 801, 801b, 802h, and 803).