A third-party special needs trust (SNT) is a critical tool for families looking to provide long-term financial security for a loved one with disabilities. This type of trust is created and funded by someone other than the beneficiary, often parents, grandparents, or other family members. It ensures the beneficiary can receive supplemental financial support without jeopardizing their eligibility for government benefits like Supplemental Security Income (SSI) and Medicaid.

• Protects Government Benefits

  One of the main reasons a third-party special needs trust is essential is that it protects the beneficiary’s eligibility for needs-based government programs. SSI and Medicaid have strict income and asset limits. Any direct inheritance or large sum of money could disqualify a person from these programs. A third-party SNT allows the disabled individual to benefit from the trust without owning the assets, keeping them eligible for vital public assistance.

• Flexible Financial Support

  The funds in a third-party SNT can be used for a wide variety of expenses that enhance the beneficiary’s quality of life. This may include medical treatments, education, personal care, travel, recreation, and more. While SSI covers basic needs like housing and food, the trust can be used to cover extras that make a significant difference in the person’s comfort and well-being.

• Avoids Disruptions in Care

  In the absence of proper planning, assets inherited by a disabled person could be quickly depleted or poorly managed, leading to a disruption in their care. A third-party SNT provides structured financial management, overseen by a trustee who is responsible for ensuring the funds are used appropriately and in the beneficiary’s best interest.

• Policy Issued in 49 States

  This policy is available across 49 states, allowing families nationwide to take advantage of the program. Wherever you are, we are ready to provide your family with the protection it deserves.

• Flexible Ownership and Beneficiary Options

  The flexibility of this policy is another key advantage. Parents, grandparents, or anyone else with an insurable interest in the individual can be the owner or beneficiary of the policy. This allows you to tailor the plan to meet your family’s unique needs.

• Preserves Family Wealth

  A third-party special needs trust also preserves family wealth across generations. Parents or other relatives can leave assets to the trust without worrying that these funds will be lost to government recovery programs or misused. It creates a stable financial environment for the beneficiary while protecting the family’s estate from being unintentionally depleted by medical or care expenses.

• Tailored to Family Wishes

  The trust allows the grantor (the person creating the trust) to set specific guidelines on how the funds should be used. The trustee is legally obligated to follow these instructions, ensuring that the family’s wishes are respected. This adds an extra layer of control and peace of mind for the family members setting up the trust.

• Avoids Family Conflict

  By designating a third-party special needs trust, families can avoid potential conflicts over how funds should be allocated for the disabled individual. With a trustee managing the funds, family members can be assured that there is a fair and organized process for handling financial decisions, reducing tension or misunderstandings.