---
title: "Draft a supplemental-needs trust for a disabled beneficiary"
url: "https://ailawframework.com/practice/trusts-and-estate-planning/draft-a-special-needs-or-protective-trust-from-the-instructions/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A19-T1-R11-US"
practice_area: "Trusts & Estate Planning"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Draft a supplemental-needs trust for a disabled beneficiary

> From the instructions, list whether the trust is a first-party trust, a pooled trust or a third-party trust, and extract any payback clause. Draft no trust that will be signed.

Canonical page: https://ailawframework.com/practice/trusts-and-estate-planning/draft-a-special-needs-or-protective-trust-from-the-instructions/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Trusts & Estate Planning](https://ailawframework.com/practice/trusts-and-estate-planning.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the instructions, list whether the trust is a first-party trust, a pooled trust or a third-party trust, and extract any payback clause. Draft no trust that will be signed. |
| What the lawyer must review | You write the trust. A first-party trust described in 42 U.S.C. § 1396p(d)(4)(A) holds the assets of an individual under 65 who is disabled as defined in section 1382c(a)(3), is established for that individual by the individual, a parent, grandparent, legal guardian or a court, and provides that the state will receive amounts remaining at death up to the medical assistance paid. A pooled trust is subsection (d)(4)(C), which starts from a different set of conditions, including a non-profit association. A third-party trust is not a (d)(4)(A) trust. Do not copy the payback clause into it. State Medicaid rules add requirements. Open them. |
| Written for | United States |
| Applies to | [Draft a special-needs or protective trust from the instructions](https://ailawframework.com/practice/trusts-and-estate-planning/draft-a-special-needs-or-protective-trust-from-the-instructions.md) |

## Checking plan

- What the AI does: From the instructions, list whether the trust is a first-party trust, a pooled trust or a third-party trust, and extract any payback clause. Draft no trust that will be signed.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Do not use one form for (d)(4)(A), (d)(4)(C) and a third-party trust.
- The age limit in (d)(4)(A) is under 65. Do not drop it.

## Sources

- [42 U.S.C. § 1396p, Liens, adjustments and recoveries, and transfers of assets](https://www.law.cornell.edu/uscode/text/42/1396p) (checked 2026-10-22)
- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)
- [ABA Model Rule 1.1, Competence](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_1_competence/) (checked 2026-10-22)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Special disability trust: setup checklist from the Services Australia requirements that were opened](https://ailawframework.com/precedents/trusts-and-estate-planning/special-disability-trust-checklist.md) | Checklist | Yellow | Checklist of the requirements on the Services Australia 'how it works' page for a special disability trust. It does not state the severe-disability test or any dollar concession.… |

Signed-in accounts can read the full text of each one.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*