A Special Needs Trust is a trust that holds title to property for the benefit of someone who has a disability. A Special Needs Trust can be used to provide for the needs of a disabled person.  The funds are meant to supplement benefits received from various governmental assistance programs, including SSI and Medi-Cal. A Special Needs Trust can hold cash, real property, personal property and life insurance proceeds.  A parent, or other loved one, can establish a third party special needs trust for a disabled child, or family member.  The best time to do this is when the disabled person’s parent is preparing their estate plan.