Special Needs Trust - Pennsylvania
SPECIAL NEEDS TRUST
I, [SETTLOR FULL LEGAL NAME], of [ADDRESS], Pennsylvania, establish the [TRUST NAME] Third-Party Special Needs Trust on [DATE]. I transfer the property identified in Schedule A to [INITIAL TRUSTEE FULL LEGAL NAME], of [ADDRESS], as trustee. The trustee accepts that property and agrees to hold it under this instrument. This trust is for [BENEFICIARY FULL LEGAL NAME], born [DATE OF BIRTH] (the "Beneficiary"). I am a person separate from the Beneficiary and the trustee.
1. Third-party funding and purpose
This trust is funded only with property of me or another person other than the Beneficiary or the Beneficiary's spouse. The trustee shall decline any proposed contribution traceable to the Beneficiary's or the spouse's property and refer it for separate benefits advice. A property description alone does not complete a transfer requiring a deed, account retitling, or beneficiary designation. The trustee shall document each contribution and its source.
The purpose of this trust is to provide supplemental goods, services, and support for the Beneficiary. The trustee shall consider current SSI, Medicaid, and other applicable program rules before making a distribution. This instrument does not promise that a distribution or the trust itself will preserve eligibility.
2. Irrevocability and settlor interest
This trust is irrevocable. I reserve no unilateral power to revoke, amend, withdraw property, direct distributions, or benefit from the trust. The Beneficiary likewise has no power to revoke it or compel a distribution. A later consensual or court-approved modification or termination may still be possible under mandatory Pennsylvania law, including 20 Pa.C.S. § 7740.1; this instrument does not displace that law.
3. Distributions while Beneficiary lives
The trustee may distribute income or principal to or for the Beneficiary for needs that the trustee judges appropriate, such as therapies, education, transportation, equipment, recreation, or care. The trustee may pay providers directly and may retain income not distributed. Before paying cash to the Beneficiary or paying for shelter, the trustee should assess the effect under the current benefits rules and the Beneficiary's circumstances. 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 that affects benefits when the Beneficiary's welfare warrants it; no blanket prohibition overrides that judgment. The trustee shall act in good faith and exercise reasonable care, skill, and caution.
The Beneficiary's interest cannot be transferred voluntarily or involuntarily before receipt, to the extent allowed by 20 Pa.C.S. §§ 7742–7744. Statutory creditor exceptions and the Beneficiary's right to seek relief for abuse of discretion remain available.
4. Trustees and administration
If the initial trustee resigns, dies, is removed, or cannot serve, [FIRST SUCCESSOR FULL NAME AND ADDRESS] shall serve; if unavailable, [SECOND SUCCESSOR FULL NAME AND ADDRESS] shall serve. If neither serves, the vacancy shall be filled under 20 Pa.C.S. § 7764(c). A successor accepts in writing. This trust authorizes resignation without court approval under § 7765(a.1)(2), by signed notice to me and the current Beneficiary or legal representative; the departing trustee shall transfer records and property to the successor. Resignation does not erase prior liability.
The trustee shall keep trust property separate, maintain adequate records, and give notices, information, and reports required by § 7780.3, including notice to current beneficiaries when the trustee learns of my death or adjudicated incapacity. Subject to law and this trust, the trustee may hold, invest, insure, lease, sell, exchange, and distribute property; employ advisers; pay proper expenses; and settle claims. Compensation and reimbursement shall be reasonable and lawful. The court may remove a trustee or grant remedies for breach under §§ 7766 and 7781. There is no contractual cure period, automatic prevailing-party fee award, mandatory arbitration, or blanket liability cap.
5. Distribution when Beneficiary dies
At the Beneficiary's death, after payment of enforceable trust expenses, claims, and taxes under applicable law, the trustee shall distribute 100% of the remaining trust property outright to [PRIMARY REMAINDER BENEFICIARY FULL NAME], if living. If not, the trustee shall distribute 100% to [ALTERNATE REMAINDER BENEFICIARY FULL NAME], if living. If neither is living, the trustee shall distribute 100% to [NAMED CHARITY AND ADDRESS]. Complete every name before signing.
6. Governing law
Pennsylvania law governs this trust, including its mandatory rules. Court proceedings follow applicable jurisdiction and venue law.
Signatures
I sign this instrument to establish the trust and transfer the Schedule A property identified below.
Settlor signature: ______________________________ Date: [__/__/____]
Printed name: [SETTLOR FULL LEGAL NAME]
I accept the trusteeship and acknowledge receipt of the Schedule A property.
Initial trustee signature: ______________________________ Date: [__/__/____]
Printed name: [INITIAL TRUSTEE FULL LEGAL NAME]
Successor trustee acceptance (when service begins)
I accept the trusteeship and acknowledge receipt of trust property and records identified in an attached inventory.
Successor trustee signature: ______________________________ Date: [__/__/____]
Printed name: [SUCCESSOR TRUSTEE FULL LEGAL NAME]
Schedule A — property transferred now
Identify at least one present asset precisely, and complete every separate transfer step required for title or control.
- [SPECIFIC PRESENT ASSET, AMOUNT, AND IDENTIFYING DETAILS]: [TRANSFER METHOD AND DATE]
- [ADDITIONAL PRESENT ASSET, IF ANY]: [TRANSFER METHOD AND DATE]
Settlor confirmation of Schedule A: ______________________________ Date: [__/__/____]
Trustee receipt of Schedule A: ______________________________ Date: [__/__/____]
About this template
- Last updated
- October 25, 2026
- Jurisdiction
- Pennsylvania
- Category
- Estate Planning & Wills
Legal authority
- 20 Pa.C.S. § 7705
- 20 Pa.C.S. § 7731
- 20 Pa.C.S. § 7732
- 20 Pa.C.S. § 7740.1
- 20 Pa.C.S. § 7742
- 20 Pa.C.S. § 7743
- 20 Pa.C.S. § 7744
- 20 Pa.C.S. § 7745
- 20 Pa.C.S. § 7764
- 20 Pa.C.S. § 7765
- 20 Pa.C.S. § 7766
- 20 Pa.C.S. § 7768
- 20 Pa.C.S. § 7771
- 20 Pa.C.S. § 7774
- 20 Pa.C.S. § 7780
- 20 Pa.C.S. § 7780.3
- 20 Pa.C.S. § 7780.5
- 20 Pa.C.S. § 7781
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
The statutes this template relies on are listed under Legal authority.
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 (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)."
20 Pa.C.S. § 7705(b) (checked October 21, 2026): "Notwithstanding a contrary provision in the terms of the trust, the following rules apply:"
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