Third Party Special Needs Trust
A third party special needs trust is a trust created by someone else with that person’s assets for the benefit of another without causing the beneficiary to be disqualified from needs based benefits. If you want to provide benefits to an individual to satisfy needs not covered by Medicaid benefits without causing that person to lose benefits, the assets should be placed in a properly drafted special needs trust. Assets remaining in the trust at the beneficiary’s death are distributed according to the trust document. They are not used to reimburse the state.