[3] Generally, irrevocable trusts can be used for minors, beneficiaries with physical or mental challenges, and as a method of asset protection.
In addition to the public benefits preservation reasons for such a trust, there are administrative advantages of using a trust to hold and manage property intended for the benefit of the beneficiary, especially if the beneficiary lacks the legal capacity to handle his or her own financial affairs.
In such jurisdictions, there is often legislation that provides advantages to such trusts in the areas of taxation and state benefits, e.g., in Ireland and the United Kingdom.
In the United States of America, such trusts provide advantages in helping beneficiaries qualify for health care coverage under state Medicaid programs, and also for monthly cash payments under the Supplemental Security Income (SSI) program operated by the Social Security Administration.
The use of a private discretionary trust can not only be more efficient in terms of taxation and access to government benefits but can also allow for more efficient investment of funds held than where funds are held by a court official (such as the Official Receiver in England and Wales).