What is a "third-party" special needs trust?

What is a third-party special needs trust?

Question

What is a "third-party" special needs trust?

Answer

A “third-party” special needs trust is funded with money from someone other than the person with a disability – often a family member who wants to leave the beneficiary an inheritance or gift. The person with a disability never owns the money in the trust. In contrast, a “first-party” special needs trust is funded with the beneficiary’s own money – perhaps money received from an insurance settlement or through a prior inheritance or gift.

Learn more about First-Party vs. Third-Party Special Needs Trusts.

Learn more about Special Needs Trusts on Nolo.com

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