c. Special needs trusts.
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-10-05 · United States
A special needs trust is a trust that may be created under some state laws, often by family members for disabled persons who are not able to make financial decisions for themselves. Generally, the assets within the trust are not accessible to the beneficiary.
(1) If the beneficiary does not have access to income from the trust, then it is not counted as part of income.
(2) If income from the trust is paid to the beneficiary regularly, those payments are counted as income.
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