YES! Though sometimes the terms are used interchangeably, a special needs trust is set up for a disabled person under the age of 65 using his or her own assets while a supplemental needs trust is set up for a disabled person under age 65 by a third party using their assets (NOT the disabled person’s assets). The most important difference between the two types of trusts is that a special needs trust must contain a “pay back” provision making the state the primary beneficiary of the trust at the special needs person’s death or upon early termination of the trust to pay back the Medicaid benefits provided by the state for the care of the special needs person. In contrast, a supplemental needs trust does not contain a “pay back” provision and, upon the special needs person’s death, the remainder of the trust can be payable to beneficiaries chosen by the third party that created the trust. Our firm is well-versed in all aspects of these trusts and will explain the most effective uses of them for your particular circumstances.