Tina, you're correct though the amount is going to vary by family. I attached the SSA link on that. That's the law. But a special needs trust is something that a lawyer helps you set up that works like a legal loophole. The beneficiary doesn't have control of the money, can't make decisions about it, the money can only be used for certain items, there are all sorts of rules that vary by state. Thus the need for a lawyer who specializes in this.
There are other items that are excluded from the asset limitation. There's a list of excluded assets on the ssa.gov website also. Plus, as I found when I sold my house, tons of other excluded assets in their own rules.
http://ssa.gov/
