The Short Answer

In Pennsylvania, a “living trust” usually means a revocable trust you create during your lifetime to manage assets and (if properly funded) help avoid probate. An irrevocable trust generally cannot be changed once created and is often used for asset-protection or tax-planning goals. A supplemental needs trust (also called a special needs trust) is designed to hold assets for a person with a disability without disqualifying them from means-tested benefits like Medical Assistance, when structured correctly.

What Pennsylvania Law Says

Trusts in Pennsylvania are governed primarily by the Pennsylvania Uniform Trust Act (Title 20). The key legal differences among these trusts usually come down to (1) whether the trust is revocable or irrevocable, and (2) whether the trust is drafted to comply with rules that protect public-benefits eligibility for a beneficiary with a disability.

The Statute

The primary law governing this issue (for disability-focused pooled supplemental needs trusts) is 20 Pa.C.S. § 7799.3.

This statute establishes requirements for pooled trusts for individuals with disabilities and, when approved for Medical Assistance purposes, provides that a disabled beneficiary’s interest in an approved pooled trust generally is not treated as a countable resource for eligibility.

How the three trust types differ in plain English:

• Living trust (typically revocable): You usually keep control (you can amend/revoke), can serve as trustee, and the trust is often used to manage assets during incapacity and pass assets at death outside probate—but only for assets actually titled into the trust.
• Irrevocable trust: You generally give up some control/ownership. Depending on how it’s drafted and funded, it may help with creditor protection, Medicaid/Medical Assistance planning, or tax strategies—but it can also create tax and control tradeoffs.
• Supplemental needs trust: The goal is not just probate avoidance—it’s protecting eligibility for means-tested benefits while still allowing trust funds to improve the beneficiary’s quality of life. Pennsylvania law specifically addresses pooled disability trusts in 20 Pa.C.S. § 7799.3, and other types of special needs trusts often require careful coordination with federal and state benefit rules.

For more background on where trusts fit into an overall estate plan, you may find these helpful: trust vs. will in Pennsylvania and revocable living trusts and probate avoidance.

Why You Should Speak with an Attorney

While the labels sound straightforward, choosing (and drafting) the right trust is highly fact-specific—and mistakes can be expensive or irreversible. Legal outcomes often depend on:

• Strict Rules for Benefits Eligibility: A supplemental needs trust that is drafted or administered incorrectly can unintentionally disqualify a beneficiary from Medical Assistance/SSI or trigger payback and lien issues.
• Burden of Proof and Documentation: If the trust is challenged (by family members, creditors, or an agency), the trust language, funding trail, and trustee actions matter.
• Irrevocability Means Limited “Undo” Options: With an irrevocable trust, you may not be able to simply change your mind later—so the upfront design has to match your goals (tax, protection, control, and family dynamics).

Trying to handle this alone can lead to unintended tax consequences, probate still being required, or loss of benefits for a loved one with a disability.

Get Connected with a Pennsylvania Attorney

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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.