Third Party Special Needs Trusts are funded with assets of someone other than the beneficiary. They are the most common and effective way for parents to provide for a child with a disability, and they are not subject to the payback provision. Typically, Third Party SNTs are established through a Revocable Living Trust or as a Stand-Alone Trust. It can also be established through a Will.
Benefits of a Third Party SNT include:
- No requirement that the state of California be paid back
- Trust provisions can be flexible and drafted in accordance with your wishes and desires for the beneficiary, within the guidelines allowed by law
- Trustees and successors know what to expect and can prepare/train accordingly
- If laws change, the trust can be amended
- Ensures that trust assets stay in the family