Special Needs Trust - Delaware
DELAWARE THIRD-PARTY SPECIAL NEEDS TRUST
Trust name: [FULL TRUST NAME]
Date of trust: [__/__/____]
Settlor: [SETTLOR FULL LEGAL NAME], [ADDRESS]
Initial Trustee: [TRUSTEE FULL LEGAL NAME], [ADDRESS]
1. Present transfer and third-party funding
I, the Settlor, transfer the cash identified in Schedule A to the Trustee now, to hold as a separate irrevocable trust. The Trustee accepts the trusteeship and acknowledges actual receipt in Schedule A. The sole current Beneficiary is [BENEFICIARY FULL LEGAL NAME], born [__/__/____]. The Settlor is neither the Beneficiary nor the Beneficiary's spouse. The Trustee shall accept later additions only from persons other than the Beneficiary or the Beneficiary's spouse, and shall record each donor and item. The Trustee shall not place the Beneficiary's or spouse's property in this third-party trust. See SSA POMS SI 01120.200. Property is included only when actually transferred to the Trustee.
2. Purpose and discretionary distributions
This trust provides goods and services for the Beneficiary's comfort, care, education, health, and participation in community life. During the Beneficiary's life, the Trustee may distribute income or principal to or for the Beneficiary in amounts and at times the Trustee decides in good faith. The Trustee should consider available public benefits, other resources, and any likely effect of a proposed payment on benefits before making it. The Trustee may pay a provider directly when appropriate, but may make another payment when its overall benefit to the Beneficiary warrants it. No clause promises that a payment preserves eligibility for a particular program. Undistributed income remains in the trust. The Beneficiary may request a distribution but cannot compel one merely because the Beneficiary is eligible; the Trustee's discretion remains subject to legal review. See 12 Del. C. § 3315.
3. Irrevocability and spendthrift direction
The Settlor reserves no unilateral power to revoke or amend this trust, reclaim its property, direct a distribution, or appoint property to the Settlor. Neither the Settlor nor the Settlor's spouse is a beneficiary. This clause does not bar modification or termination authorized by applicable law or a court with jurisdiction. Before actual receipt, the Beneficiary's interest may not be voluntarily or involuntarily assigned or pledged; the Trustee shall not honor an attempted assignment. This restriction is subject to 12 Del. C. § 3536 and other applicable law.
4. Termination and complete remainder
This trust terminates on the Beneficiary's death. After payment of proper trust expenses and liabilities, the Trustee shall distribute 100% of the remainder outright to [PRIMARY REMAINDER BENEFICIARY FULL LEGAL NAME], if then living. Otherwise, the Trustee shall distribute 100% outright to [ALTERNATE REMAINDER BENEFICIARY FULL LEGAL NAME], if then living. If neither is living, the Trustee shall distribute 100% to [FINAL CHARITABLE BENEFICIARY LEGAL NAME AND ADDRESS], if then in existence; otherwise to [SECOND FINAL CHARITABLE BENEFICIARY LEGAL NAME AND ADDRESS], if then in existence. If neither organization exists, the Trustee shall distribute 100% to the Beneficiary's estate. The named remainder persons and organizations must be different from the Settlor. The Trustee may convert property to cash as reasonably needed for final distribution.
5. Trustee succession, records, and powers
If the initial Trustee dies, resigns, becomes unable to act, or declines to serve, [FIRST SUCCESSOR TRUSTEE FULL LEGAL NAME AND ADDRESS] shall serve; if that person cannot serve, [SECOND SUCCESSOR TRUSTEE FULL LEGAL NAME AND ADDRESS] shall serve. A successor accepts by a signed writing delivered to the serving Trustee, or to the Beneficiary if there is no serving Trustee. A departing Trustee shall transfer trust property and records promptly. If these appointments fail, 12 Del. C. § 3327A supplies a statutory appointment route.
The Trustee shall keep trust property separate from personal property, maintain records of receipts, payments and investments, and send an annual account to the adult Beneficiary or the Beneficiary's lawful representative. After the Beneficiary's death, the Trustee shall provide a final account to the persons then entitled to the remainder. The Trustee shall exercise care in investing as described in 12 Del. C. § 3302(a), and may use the powers in § 3325, including collecting, investing, selling, insuring and paying proper trust expenses. The Trustee may receive reasonable compensation and reimbursement of proper administration expenses.
6. Governing law and remedies
Delaware law governs administration while this trust is administered in Delaware, subject to 12 Del. C. § 3332 and controlling law. A dispute may be brought in a court with jurisdiction. The Court of Chancery has equity jurisdiction under 10 Del. C. § 341, subject to § 342 when another court affords a sufficient remedy. A court may order relief for a trustee's breach under 12 Del. C. § 3581. No clause excuses or indemnifies a fiduciary for the fiduciary's own wilful misconduct, and this instrument places no blanket cap on a Beneficiary's fiduciary-duty claim. See 12 Del. C. §§ 3303(a), 3328(e).
7. Signatures and witnesses
The Settlor signs this writing in the presence of the two undersigned disinterested witnesses. Each witness signs in the Settlor's presence and should have no beneficial interest in the trust materially increased or decreased by its creation. See 12 Del. C. § 3545(a).
Settlor signature: __________________________ Date: [__/__/____]
Printed name: [SETTLOR FULL LEGAL NAME]
Witness 1 signature: _______________________ Date: [__/__/____]
Printed name and address: [WITNESS 1 FULL LEGAL NAME AND ADDRESS]
Witness 2 signature: _______________________ Date: [__/__/____]
Printed name and address: [WITNESS 2 FULL LEGAL NAME AND ADDRESS]
I accept the trusteeship and the property listed in Schedule A.
Trustee signature: __________________________ Date: [__/__/____]
Printed name: [TRUSTEE FULL LEGAL NAME]
Schedule A — Initial property and receipt
The Settlor delivers $[AMOUNT, GREATER THAN ZERO] in cash to the Trustee on [__/__/____]. Additional property actually delivered at signing: [DESCRIBE OR WRITE “NONE”]. Identify any required separate transfer document: [DOCUMENT OR “NONE”].
I acknowledge actual receipt of that property for [FULL TRUST NAME].
Trustee signature: __________________________ Date received: [__/__/____]
About this template
- Last updated
- October 21, 2026
- Citations checked
- October 21, 2026
- Jurisdiction
- Delaware
- Category
- Estate Planning & Wills
Legal authority
- 12 Del. C. § 3302(a) (fiduciary investment care)
- 12 Del. C. § 3303(a) (effect of terms; no exculpation for fiduciary's own wilful misconduct)
- 12 Del. C. § 3315(b) (discretionary distribution interest)
- 12 Del. C. § 3325 (specific trustee powers)
- 12 Del. C. § 3327A (successor officeholder)
- 12 Del. C. § 3328(e) (beneficiary fiduciary-duty actions excluded from personal-liability statute)
- 12 Del. C. § 3332(b) (law governing Delaware administration)
- 12 Del. C. § 3536(a) (beneficiary creditors and assignments)
- 12 Del. C. § 3545(a) (written trust execution with survivorship interests)
- 12 Del. C. § 3581(b)(3) (breach remedies)
- SSA POMS SI 01120.200 (third-party trust definition)
- 10 Del. C. § 341 (Chancery equity jurisdiction)
- 10 Del. C. § 342 (adequate-remedy limit)
Estate planning documents decide what happens to your property, your children, and your medical care when you cannot make those decisions yourself. Wills, trusts, powers of attorney, and health care directives each serve different purposes and each have to meet state law requirements for signing, witnessing, and notarization. A document that looks fine on the page but was not executed correctly can be rejected in probate, which is exactly when it is too late to fix.
Not legal advice
This template is provided for informational purposes. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.
Checked against the law it cites
A reviewer verified this template's legal citations against the official source on October 21, 2026.
SSA POMS SI 01120.200 (third-party trust definition) (checked October 21, 2026): "A third-party trust is a trust established with the assets of someone other than the trust beneficiary (or their spouse)."
12 Del. C. § 3302(a) (checked October 21, 2026): "a fiduciary shall act with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use to attain the purposes of the account."
12 Del. C. § 3315(b) (checked October 21, 2026): "A beneficiary that has a discretionary interest in a trust shall not be deemed to have a right to compel a distribution from the trust."
12 Del. C. § 3303(a) (checked October 21, 2026): "provided, however, that nothing contained in this section shall be construed to permit the exculpation or indemnification of a fiduciary for the fiduciary’s own wilful misconduct or preclude a court of competent jurisdiction from removing a fiduciary on account of the fiduciary’s wilful misconduct."
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