Although you may want a general trust to help preserve your assets, there are various types of trusts designed for special purposes. Here are two of the most common. Either of these could be set up as a standalone trust or incorporated into a living trust. Specialized Trusts About 13.5% of the U.S. population have some type of disability. Source: disabilitycompendium.org, 2023 (2021 data, most recent available) Special-Needs Trust A special-needs trust can help provide for an individual’s lifetime care and other financial needs while maintaining eligibility for government programs such as Medicaid, Medicare, and Social Security Disability Insurance. When someone with special needs receives a life insurance payout or inheritance directly, he or she could be disqualified from government assistance programs. A special-needs trust avoids such an outcome. Distributions from the trust can be made at the discretion of a trustee to pay for a beneficiary’s special needs.