There are rules governing what the funds paid from a supplemental needs trust (also known as a special needs trust) may be used for. Supplemental needs trusts (SNTs) are meant to "supplement" necessary income, to pay for "luxuries" that Medicaid or SSI does not cover.

Therefore, if funds from the trust are used regularly to purchase necessities, such as groceries or housing, those funds may count as income. Certain items should not be paid for from a supplemental needs trust if the beneficiary is receiving SSI. These include... Click here to read more.