Special Needs Trust - Nebraska
NEBRASKA THIRD-PARTY SPECIAL NEEDS TRUST AGREEMENT
This agreement is made on [__/__/____] by [SETTLOR FULL LEGAL NAME] of [ADDRESS] (Settlor) and [TRUSTEE FULL LEGAL NAME] of [ADDRESS] (Trustee). The Settlor is neither the beneficiary nor the beneficiary's spouse. The Settlor now delivers the cash in Schedule A to the Trustee, who accepts it as trust property.
1. Trust and beneficiary
The trust is named [TRUST NAME] Special Needs Trust. Its sole current beneficiary is [BENEFICIARY FULL LEGAL NAME], born [__/__/____], of [ADDRESS] (Beneficiary). The Trustee shall hold the delivered cash, later accepted additions, and their proceeds under this agreement. The Trustee's signed Schedule A receipt acknowledges delivery; listing other assets alone does not transfer their title.
The purpose is to supplement the Beneficiary's care and quality of life while allowing the Trustee to consider any means-tested benefits available to the Beneficiary. This agreement does not promise benefit eligibility or a particular tax treatment.
2. Third-party funding and irrevocability
The Settlor retains no unilateral right to revoke or amend this trust and no right to a distribution. The Trustee may accept additional property only from a person other than the Beneficiary or the Beneficiary's spouse, after documenting its source. The Trustee shall reject property owned by either of them and refer any proposed transfer of that property for separate legal review. This instrument creates no first-party trust or Medicaid repayment term.
Modification or termination may occur under applicable Nebraska law. Under Neb. Rev. Stat. § 30-3837(a), a proposed modification or termination based on the consent of the Settlor and all beneficiaries requires a petition and court approval. Other statutory routes remain available.
3. Distributions during the Beneficiary's life
The Trustee may distribute income or principal in amounts the Trustee determines advisable in good faith for the Beneficiary's health, education, comfort, personal assistance, transportation, recreation, or other needs. The Trustee may pay a provider directly or purchase goods or services for the Beneficiary. Before paying cash to the Beneficiary or paying for shelter, the Trustee shall consider the likely effect under the Beneficiary's actual benefit programs and may seek advice from benefits counsel. For SSI, food provided directly to the Beneficiary has not counted as in-kind support and maintenance since September 30, 2024; cash or a gift card to buy food can count as unearned income. Other benefit programs may treat food differently. The Trustee may make a distribution despite a benefit reduction when the Trustee determines the Beneficiary's needs justify it.
No fixed amount is payable to the Beneficiary, and the Beneficiary has no power to direct a payment or require one under this agreement. The Trustee's discretion remains subject to Nebraska fiduciary duties. Undistributed income becomes principal.
4. Spendthrift protection
No beneficiary may voluntarily transfer an interest before receipt, and no creditor may involuntarily reach that interest before receipt, except as Nebraska law permits. This provision does not override the exceptions in Neb. Rev. Stat. § 30-3848 or other applicable law.
5. Termination and complete remainder
This trust terminates on the Beneficiary's death or earlier exhaustion of its property. Following the Beneficiary's death, the Trustee shall pay lawful trust expenses and distribute 100% of the remaining trust property to [PRIMARY REMAINDER BENEFICIARY FULL LEGAL NAME] of [ADDRESS], if living or in existence. If that recipient cannot take, the Trustee shall distribute 100% to [ALTERNATE REMAINDER BENEFICIARY OR CHARITY FULL LEGAL NAME] of [ADDRESS]. Complete the alternate designation before signing. The Trustee may retain a reasonable reserve for final debts, expenses and taxes, then distribute any unused reserve under this Section.
6. Trustee administration and reports
The Trustee shall administer the trust in good faith and with reasonable care, skill, and caution; keep adequate records; and separate trust property from personal property. Subject to fiduciary duties, the Trustee may retain, invest, sell, insure, and manage trust property, hire advisers, pay reasonable administration expenses, and exercise powers available under Neb. Rev. Stat. § 30-3880.
The Trustee shall give the notices of acceptance and of this irrevocable trust's existence within the periods required by Neb. Rev. Stat. § 30-3878. At least annually and at termination, the Trustee shall report to distributees or permissible distributees of trust income or principal, and to other qualified or nonqualified beneficiaries who request it, as required by that section. The report shall identify trust property, liabilities, receipts, disbursements, trustee compensation, and property values when feasible. A representative may receive information for the Beneficiary as applicable law provides.
7. Trustee succession
The Trustee may resign by giving at least thirty days' notice to qualified beneficiaries, the living Settlor, and any cotrustee, or with court approval. The Settlor, a cotrustee, or any beneficiary may ask a court to remove a Trustee under Neb. Rev. Stat. § 30-3862.
If the Trustee dies, resigns, becomes unable to serve, or is removed, [FIRST SUCCESSOR TRUSTEE FULL NAME] of [ADDRESS] shall serve. If unavailable, [SECOND SUCCESSOR TRUSTEE FULL NAME] of [ADDRESS] shall serve. If neither can serve and no cotrustee remains, a successor may be appointed by unanimous agreement of qualified beneficiaries, then by the court, under Neb. Rev. Stat. § 30-3859(c). A successor shall sign a written acceptance and receive the trust property and records.
8. Liability and governing law
Nebraska law governs this trust. No term of this agreement excuses a breach committed in bad faith or with reckless indifference to the trust's purposes or beneficiaries' interests. Personal liability for administration torts and obligations arising from trust property is determined under Neb. Rev. Stat. § 30-3899, including personal fault. This agreement does not cap breach remedies at the value of the trust property. Trust proceedings may be brought in a Nebraska court having jurisdiction and venue under applicable law; Neb. Rev. Stat. § 30-3814 describes the county court's trust subject matter jurisdiction.
9. Signatures
The Settlor and Trustee intend this signed instrument and the delivered Schedule A cash to create this trust now.
Settlor signature: ______________________________ Date: [__/__/____]
Printed name: [SETTLOR FULL LEGAL NAME]
Trustee signature and acceptance: ______________________________ Date: [__/__/____]
Printed name: [TRUSTEE FULL LEGAL NAME]
Schedule A — Initial trust property and receipt
Cash amount delivered to Trustee: $[AMOUNT]
Delivery method and date: [METHOD], [__/__/____]
Trust account or holding location: [ACCOUNT OR LOCATION]
The Trustee acknowledges actual receipt of the cash identified above as trust property.
Trustee receipt signature: ______________________________ Date: [__/__/____]
About this template
- Last updated
- October 25, 2026
- Citations checked
- October 25, 2026
- Jurisdiction
- Nebraska
- Category
- Estate Planning & Wills
Legal authority
- SSA POMS SI 01120.200 (third-party trust definition)
- Neb. Rev. Stat. § 30-3814 (county court jurisdiction)
- Neb. Rev. Stat. § 30-3827 (trust creation)
- Neb. Rev. Stat. § 30-3828 (creation requirements)
- Neb. Rev. Stat. § 30-3837 (consent modification by petition)
- Neb. Rev. Stat. § 30-3847 (spendthrift provision)
- Neb. Rev. Stat. § 30-3848 (spendthrift exceptions)
- Neb. Rev. Stat. § 30-3859 (trustee vacancy)
- Neb. Rev. Stat. § 30-3861 (trustee resignation)
- Neb. Rev. Stat. § 30-3862 (trustee removal)
- Neb. Rev. Stat. § 30-3866 (good-faith administration)
- Neb. Rev. Stat. § 30-3869 (prudent administration)
- Neb. Rev. Stat. § 30-3875 (record keeping)
- Neb. Rev. Stat. § 30-3878 (notices and reports)
- Neb. Rev. Stat. § 30-3880 (trustee powers)
- Neb. Rev. Stat. § 30-3897 (exculpation)
- Neb. Rev. Stat. § 30-3899 (personal fault)
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 25, 2026.
SSA SSI Living Arrangements (2026) (checked October 25, 2026): "Effective 09/30/2024, food is no longer included in ISM calculations. This means that the value of food will no longer reduce your SSI payment."
SSA SSI Living Arrangements (2026), cash for food (checked October 25, 2026): "If a person gives you cash or a gift card to pay for your food, the value of those items is considered unearned income."
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)."
Neb. Rev. Stat. § 30-3897(a) (checked October 21, 2026): "A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: (1) relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries"
Draft your Special Needs Trust in the editor
Answer a few questions, let the AI editor draft each section from your answers, review it, and download Word and PDF. $99 one time, or $249 per month for every document and every Ezel app.