First-Party vs. Third-Party Special Needs Trust
Understand the key differences, when each trust is appropriate, and how to choose the right option for your family's situation.
How the Two Trusts Compare
Third-Party Trust
- Funded by parents, grandparents, or others
- Protects inheritances and gifts
- Helps preserve SSI & Medicaid
- Often part of parents' estate plan
First-Party Trust
- Funded by the individual with a disability
- Protects settlements, inheritances already received, or personal assets
- Helps preserve SSI & Medicaid
- Often created after assets are received
Which Situation Sounds Like Yours?
Parents planning their estate
A Third-Party Trust may help protect future inheritances.
Third-Party TrustA loved one received a settlement
A First-Party Trust may help preserve benefits while protecting those assets.
First-Party TrustGrandparents want to leave a gift
Planning ahead may help ensure those gifts support—not disrupt—future benefits.
Third-Party TrustYour child already owns assets
A First-Party Trust may be the appropriate planning tool.
First-Party TrustWhy Choosing the Right Trust Matters
The right trust protects more than money — it protects access to the benefits and care your loved one relies on every day.
Thoughtful planning today helps provide lasting support tomorrow.
- Preserve government benefits
- Protect family assets
- Support long-term quality of life
- Create greater peace of mind
A Trust Is Just One Part of the Plan
Many families also consider these documents to build complete, coordinated protection:
Why Families Choose Special Needs Trusts Online
First-Party Special Needs Trust
Protect assets already owned by an individual with disabilities while helping preserve eligibility for SSI and Medicaid.
Explore First-Party TrustLetter of Intent
Share important details about your loved one's daily routines, medical needs, preferences, and future care with caregivers and trustees.
View Letter of IntentHealthcare Directive
Authorize someone you trust to make healthcare decisions if you're unable to communicate your wishes.
Learn About Healthcare DirectivesPower of Attorney
Appoint someone to assist with important financial or personal matters when additional support is needed.
Explore Power of AttorneyPower of Attorney for Education
Help families stay involved in educational planning, IEP meetings, and school communication after a student turns 18.
Learn MoreSupported Decision-Making
Discover a less restrictive planning option that empowers adults with disabilities to make their own decisions with trusted support.
Explore Supported Decision-MakingABLE Account
Learn how an ABLE Account can work alongside a Special Needs Trust to help save for qualified disability-related expenses.
Learn About ABLE AccountsFrequently Asked Questions
What's the biggest difference between the two trusts?
Can grandparents contribute?
Will either trust affect SSI or Medicaid?
Can I update my plan later?
Build the Right Plan with Confidence
Whether you're planning ahead or responding to a recent life event, we're here to help you choose the planning solution that fits your family's needs.