Q. What is a third party special needs trust?

A. A third party special needs trusts are set up and funded by a donor. These trusts can also be life insurance beneficiaries, own property, investments, and retirement accounts. There is no limit to the amount of funds and the funds can be used for needs to supplement the individual’s government benefits. Upon the beneficiary’s death, any leftover funds can pass to the donor’s listed beneficiaries. There is no Medicaid payback requirement with a third party special needs trust.