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In the event a special needs beneficiary loses their special needs designation, the trust can 1) become a regular irrevocable trust or 2) because the legal purpose of the trust no longer exists, the trust would be dissolved and terminated and the contents of the trust go to the beneficiary. It depends on the wording of the trust. Absent any wording in the trust saying that it would convert to irrevocable trust, it would typically dissolve as the purpose is no longer existing.