One of the most important move parents of children with special needs can make is to set up a special-needs trust, also known as a supplemental-needs trust. This is crucial, financial planners say, because a child can be denied significant Medicaid and Social Security benefits if more than $2,000 of assets are in his or her name, excluding a residence, car and basic personal items. Proper planning is key for funding for special-needs trusts for children with special needs. Funding for the trusts typically comes mainly from the parents' life insurance. Money can also be placed in a special-needs trust