Special Needs Trust - Indiana
SPECIAL NEEDS TRUST AGREEMENT
Indiana third-party irrevocable trust
This Special Needs Trust Agreement is signed on [__/__/____] by [SETTLOR FULL NAME], of [ADDRESS] (Settlor), and [INITIAL TRUSTEE FULL NAME], of [ADDRESS] (Trustee), for [BENEFICIARY FULL NAME], born [__/__/____] (Beneficiary).
1. Creation and purpose
Settlor now transfers the property identified in Schedule A to Trustee, who accepts it for the [BENEFICIARY FULL NAME] Special Needs Trust. This trust is irrevocable. Trustee shall administer it for Beneficiary during Beneficiary's life and distribute the remainder under Section 7.
The purpose is to supplement Beneficiary's health, care, education, transportation, housing, recreation, and quality of life. Trustee shall consider public benefits when making payments, but this agreement does not promise eligibility or a particular resource or income result.
2. Third-party property only
Trustee may accept later gifts or bequests from Settlor or other third parties. Trustee shall reject and return any proposed contribution belonging to Beneficiary or Beneficiary's spouse; this trust does not create a first-party subtrust. Trustee shall keep a record of the source of each contribution. No automatic state payback is directed by this third-party instrument, but Trustee shall satisfy any claim legally payable from trust property.
3. Distributions
Trustee may distribute income or principal to or for Beneficiary, including direct payment to a provider, in amounts Trustee determines appropriate for supplemental needs. Trustee shall consider the actual benefit of a payment, applicable program rules, and any likely reduction of public benefits. Trustee may make a payment despite a benefits reduction if Beneficiary's welfare justifies it. Beneficiary has no right to compel a payment of cash or a particular distribution.
4. Spendthrift restriction
Before Trustee distributes an interest, a beneficiary may not voluntarily transfer it, and it may not be involuntarily transferred or reached by creditors, to the extent Indiana law permits. This clause is subject to applicable exceptions and does not limit lawful trust remedies.
5. Trustee administration and information
Trustee shall keep trust property separate, maintain accurate records and accounts, and administer the trust according to its terms. Trustee may hold, invest, insure, lease, sell, and manage trust property, employ advisers, and make the distributions allowed here. Trustee shall invest prudently under Ind. Code § 30-4-3.5-2 and may delegate investment and management functions only with the care required by § 30-4-3.5-9.
Trustee shall keep beneficiaries informed and give access to information and records as Ind. Code § 30-4-3-6 requires. Trustee shall send an annual statement of assets, receipts, disbursements, and compensation to Beneficiary or an authorized representative and to each adult remainder beneficiary; this additional reporting promise does not shorten any statutory right. Trustee may receive reasonable compensation of [RATE OR METHOD] and reimbursement of proper administration expenses.
6. Successor trustees and remedies
If Trustee cannot or will not serve, [FIRST SUCCESSOR FULL NAME AND ADDRESS] shall serve, then [SECOND SUCCESSOR FULL NAME AND ADDRESS]. A successor shall accept in writing and receive the trust property and records. If neither named successor serves, the vacancy shall be filled under Ind. Code § 30-4-3-33.
A beneficiary may seek the remedies provided by Ind. Code §§ 30-4-3-11 and 30-4-3-22 for trustee misconduct. This instrument imposes no arbitration, pre-suit cure period, jury waiver, automatic fee award, or limit of a breaching Trustee's liability to trust assets.
7. Beneficiary's death and remainder
At Beneficiary's death, Trustee shall pay properly payable trust expenses and taxes, then distribute 100% of the remaining property to [PRIMARY REMAINDER BENEFICIARY FULL NAME AND ADDRESS]. If that person does not survive Beneficiary, distribute 100% to [ALTERNATE REMAINDER BENEFICIARY FULL NAME AND ADDRESS]. If neither survives, distribute 100% to [NAMED CHARITY, ADDRESS, AND EIN]; if it no longer exists, Trustee shall select a substantially similar charity. Trustee shall issue a final account and close the trust after distribution.
8. Governing law
Indiana law governs the validity and administration of this trust, subject to applicable federal benefits law. An interested person may seek relief in a court with trust jurisdiction under Indiana law. An invalid provision does not invalidate the remaining provisions to the extent they can lawfully serve the trust's purpose.
Schedule A — Property transferred now
| Property and identifying details | Value, if known | Transfer evidence or date |
|---|---|---|
| [DESCRIPTION OF ASSET OR FUNDS] | [AMOUNT] | [ASSIGNMENT / DEED / DATE] |
Settlor confirms that the listed property belongs to Settlor and is transferred to Trustee. Trustee acknowledges receipt of it or its separate transfer instrument.
Signatures
Settlor: ______________________________ Date: [__/__/____]
Printed name: [SETTLOR FULL NAME]
Trustee acceptance: ______________________________ Date: [__/__/____]
Printed name: [INITIAL TRUSTEE FULL NAME]
About this template
- Last updated
- October 21, 2026
- Citations checked
- October 21, 2026
- Jurisdiction
- Indiana
- Category
- Estate Planning & Wills
Legal authority
- Ind. Code § 30-4-2-1
- Ind. Code § 30-4-3-6
- Ind. Code § 30-4-3-10
- Ind. Code § 30-4-3-11
- Ind. Code § 30-4-3-22
- Ind. Code § 30-4-3-33
- Ind. Code § 30-4-3.5-2
- Ind. Code § 30-4-3.5-9
- Ind. Code § 30-4-5-16
- SSA POMS SI 01120.200
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)."
Ind. Code § 30-4-2-1(a) (checked October 21, 2026): "A trust in either real or personal property is enforceable only if there is written evidence of the terms of the trust bearing the signature of any of the following persons: (1) The settlor. (2) The settlor's authorized agent."
Ind. Code § 30-4-3-6(a)-(b) (checked October 21, 2026): "The trustee has a duty to administer a trust according to the terms of the trust."
Ind. Code § 30-4-3-10(a)-(b) (checked October 21, 2026): "If the injury is the result of the trustee's personal act or omission as trustee, the trustee will be personally liable"
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