What is a third party special needs trust?

What is a third party special needs trust?

Home ยป What is a third party special needs trust?

Unlike a first party special needs trust that is created when a beneficiary receiving SSI or Medicaid has assets that they need to place into a trust, a third party special needs trust is any other person other than the beneficiary who wants to set assets aside for the disabled person. A parent with a special needs child is going to be creating a third party special needs trust. That is their method by which they can leave an inheritance to any individual who is receiving SSI or SSI-related Medicaid so as an inheritance can be used for their future needs to enhance or cause greater quality in life or care of the individual throughout their life. At the time of demise, there is absolutely no payback to a state who has provided medical assistance for that beneficiary against a third party special needs trust. Very important distinction to make between third party special needs trusts and first party special needs trusts.