Special Needs Trust - Vermont
VERMONT THIRD-PARTY SUPPLEMENTAL NEEDS TRUST
Trust name: [BENEFICIARY FULL NAME] Supplemental Needs Trust
Date: [__/__/____]
Before signing: This form accepts only property of a third party. Do not put the beneficiary's property or the beneficiary's spouse's property in it. Name an identifiable current beneficiary, complete the actual Schedule A transfer and 100% death remainder, and have settlor and trustee sign. A deed or retitling may be needed for a separately titled asset. Benefit eligibility depends on the applicable program rules and individual facts.
1. Creation and property
I, [SETTLOR FULL NAME], of [ADDRESS], create this irrevocable trust by transferring to [TRUSTEE FULL NAME], of [ADDRESS], as trustee, the property described as actually delivered in Schedule A. The trustee acknowledges receipt and accepts the trusteeship. Later property effectively transferred by a permitted third party becomes trust property. Vermont law governs.
The sole current beneficiary is [BENEFICIARY FULL NAME], born [DATE], of [ADDRESS]. The beneficiary has [DESCRIBE DISABILITY AND NEED FOR SUPPORT]. The trustee shall retain any disability and benefit determination records supplied with this trust. The settlor and trustee cannot be the same person if that person would also be the sole beneficiary of every beneficial interest.
The trustee shall refuse property belonging to the beneficiary or the beneficiary's spouse. This is a third-party trust under SSA POMS SI 01120.200. A proposed inheritance, recovery, or other property belonging to the beneficiary requires separate advice and a different instrument.
2. Irrevocability and supplemental distributions
This trust is irrevocable. The settlor retains no unilateral right to revoke, amend, or withdraw trust property. The trust's purpose is to supplement public benefits and improve the beneficiary's welfare. The trustee may distribute income or principal in the trustee's discretion for goods and services that benefit the beneficiary. No distribution is mandatory; the beneficiary cannot compel or direct a distribution or appoint trust property.
The trustee shall consider the rules of each benefit program before a payment and may seek advice from a qualified benefits adviser. The trustee shall not make a payment that would reduce or eliminate a public benefit unless, after specific legal and benefits advice, the trustee determines that the beneficiary's needs are better served by that payment and documents its expected effect. This discretion grants the beneficiary no enforceable right to require a payment. Neither this instrument nor its funding guarantees that a benefit agency will exclude trust property.
3. Spendthrift and trustee duties
The beneficiary's interest is subject to a spendthrift restriction on both voluntary and involuntary transfer to the extent permitted by 14A V.S.A. § 502. The beneficiary may not assign, pledge, or encumber the interest before distribution, subject to applicable law.
The trustee shall act in good faith and administer the trust prudently. The trustee may hold, invest, lease, insure, sell, and manage trust property; employ advisers; pay proper trust expenses; and make distributions under these terms. The trustee shall keep separate trust records and give qualified beneficiaries the information required by 14A V.S.A. § 813. Reasonable compensation and reimbursement of proper expenses may be paid from trust property. This instrument creates no blanket immunity or cap on liability for breach of trust.
4. Trustee succession
If the initial trustee cannot or will not serve, [FIRST SUCCESSOR FULL NAME AND ADDRESS] shall serve; if unavailable, [SECOND SUCCESSOR FULL NAME AND ADDRESS] shall serve. A successor accepts by signed writing kept with the trust records. The outgoing trustee shall deliver trust property and records to the successor. If no named successor serves, an interested person may seek court appointment of a trustee.
5. Death and remainder
This trust ends at the beneficiary's death. The trustee shall pay proper trust expenses and enforceable obligations, then distribute the remaining property in the shares in Schedule B. Each share goes to its named recipient if living at the beneficiary's death, otherwise to that row's alternate. If neither survives, that share is divided proportionately among the other surviving recipients or alternates. If none survives, the entire remainder goes to [FINAL CONTINGENT RECIPIENT FULL NAME AND ADDRESS]. The shares must total 100%. The trustee may distribute in kind at fair values and shall provide a final account.
6. Signatures
I create this irrevocable trust and transfer the initial property identified in Schedule A.
Settlor signature: ______________________________ Date: [__/__/____]
Printed name: [SETTLOR FULL NAME]
I acknowledge receipt of the initial trust property and accept the trusteeship.
Trustee signature: ______________________________ Date: [__/__/____]
Printed name: [TRUSTEE FULL NAME]
Schedule A — actual initial property
| Identifiable property and location or account identifier | Completed transfer method and date |
|---|---|
| [DESCRIPTION] | [DELIVERY / DEED / RETITLING; DATE] |
| [DESCRIPTION] | [METHOD; DATE] |
Schedule B — remainder recipients
| Recipient (full name and address) | Share | Alternate (full name and address) |
|---|---|---|
| [NAME AND ADDRESS] | [__]% | [NAME AND ADDRESS] |
| [NAME AND ADDRESS] | [__]% | [NAME AND ADDRESS] |
| Total | 100% |
About this template
- Last updated
- October 21, 2026
- Citations checked
- October 21, 2026
- Jurisdiction
- Vermont
- Category
- Estate Planning & Wills
Legal authority
- 14A V.S.A. § 401(1)
- 14A V.S.A. § 402(a)
- 14A V.S.A. § 502(a)
- 14A V.S.A. § 801
- 14A V.S.A. § 804
- 14A V.S.A. § 813(a)
- 12 V.S.A. § 5652(b)
- 12 V.S.A. § 5653(b)
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.
12 V.S.A. § 5652(b) (checked October 21, 2026): "No agreement to arbitrate is enforceable unless accompanied by or containing a written acknowledgment of arbitration signed by each of the parties or their representatives."
12 V.S.A. § 5653(b) (checked October 21, 2026): "No arbitration agreement shall have the effect of preventing a person from seeking or obtaining the assistance of the courts in enforcing his or her constitutional or civil rights."
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)."
14A V.S.A. § 401(1) (checked October 21, 2026): "A trust may be created: (1) by transfer of property to another person as trustee or to the trust in the trust’s name during the settlor’s lifetime or by will or other disposition taking effect upon the settlor’s death"
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.