Protect Your Child’s Inheritance and Benefits with a Third-Party Special Needs Trust
Third-Party Special Needs Trust
Third-Party Special Needs Trust
Protect Benefits While Providing Financial Support
A Third-Party Special Needs Trust lets family members leave money for a loved one with a disability without affecting SSI or Medicaid. It's commonly used for inheritances, gifts, savings, and life insurance proceeds.
Lets parents, grandparents, and relatives leave money for a loved one with a disability without affecting SSI or Medicaid.
Who This Is For
This service is right for you if…
- You are a parent, grandparent, or relative planning future financial support for someone with a disability.
- You want to leave gifts, savings, inheritance, or life insurance proceeds safely.
- You want your loved one to receive supplemental support while keeping essential benefits.
- You want any remaining trust funds to go to family members or other chosen beneficiaries.
When You Need This
Consider this document when…
- You are planning an inheritance for a loved one with a disability.
- A grandparent or relative wants to leave a gift.
- You are naming beneficiaries for life insurance or retirement accounts.
- You want a long-term plan that protects SSI, Medicaid, and family assets.
What Is a Third-Party Special Needs Trust?
A Third-Party Special Needs Trust allows family members, such as parents, grandparents, or relatives, to set aside money for a loved one with a disability without affecting their SSI or Medicaid benefits.
Assets placed in a Third-Party Special Needs Trust do not count toward the beneficiary’s resource limits, allowing them to keep essential benefits while still receiving support from family and friends.
Families commonly use a Third-Party SNT to plan for:
- Lifetime financial support
- Gifts from grandparents or relatives
- Future inheritances
- Life insurance proceeds
- Savings intended for long-term care
This is the most common and most flexible type of special needs trust used in long-term estate planning.
What Happens If You Do Nothing?
When family members plan to leave gifts or an inheritance without a trust to receive them, good intentions can quietly work against a loved one.
Money left directly to a loved one with a disability can unintentionally reduce or interrupt benefits like SSI and Medicaid.
A well-meaning gift from a grandparent or relative, or a life-insurance payout, can count as a personal resource and create the very problem it was meant to solve.
Without a trust to direct the funds, there’s no plan for what happens to anything left over.
A Third-Party Special Needs Trust lets you give safely and keep essential benefits protected — and setting one up is simpler and more affordable than most families expect.
How a Third-Party Trust Protects Benefits
1. Family Members Fund the Trust
Funding may come from parents, grandparents, relatives, or anyone other than the person with the disability.
2. Benefits Stay Fully Intact
Because the assets never belong to the beneficiary, they are not counted by SSI or Medicaid.
3. Trust Pays for Supplemental Needs
The trustee may pay for items that improve the quality of life without affecting benefits.
4. No Medicaid Payback Requirement
When the beneficiary passes away, the remaining assets can go to other family members, not Medicaid.
Why Third-Party Special Needs Trust Matters
A Third-Party SNT gives families the ability to:
- Enhance a loved one’s quality of life
- Keep all benefits fully protected
- Coordinate inheritances safely
- Build long-term financial stability
- Ensure support continues when parents are gone
For many families, this trust becomes a cornerstone of long-term planning.
Is a Third-Party Special Needs Trust the Best Fit for Your Family?
This trust is ideal when:
- You want to leave money for a person with a disability without affecting their benefits
- Family members — parents, grandparents, relatives — plan to contribute
- You want to preserve SSI and Medicaid eligibility
- You want any leftover assets to go to other heirs you choose
- You need a straightforward, long-term plan you can rely on
- You want a legally sound document designed to work in all 50 states
Guarantee Your Child's Future -
Maximize Their Benefits
If you leave your adult child with a significant intellectual or developmental disability over $2000 in your will, they will lose their SSI benefits. They also risk losing food stamps and housing assistance. A special needs trust in your will ensures their financial protection!
For $299, you will receive a personalized special needs trust, and will that can easily be notarized. Fill out the form below to answer a few questions about your wishes and your Special Needs Trust and/or Wills will be emailed to you within minutes.
This Trust was developed from my 20+ years of legal experience. Attorneys typically charge in excess of $3,000 for these same documents! Any questions, set up a time to me with me online or by phone by clicking here.
BENEFITS
- Protect Government Benefits
- Decide who will handle your affairs
- Determine how your assets will be distributed
- Decide what should happen in a medical emergency
INCLUDED DOCUMENTS:
- A Will for Each Spouse
- Special Needs Trust
Ready to Start Your Third Party Special Needs Trust?
If you’re ready to begin, start the guided form below. If you still have questions, our team can help you understand the next step before you move forward.
Most families also add Power of Attorney and Healthcare Directives for a complete plan.
Related Services You May Need
Families who set up a Special Needs Trust often also add these documents. Together they form a more complete plan.
FREE Letter of Intent
Document routines, preferences, and care details for future caregivers — free.
Learn more
First-Party Trust for Adults
Protect your own settlement, inheritance, or lump sum while keeping benefits.
Learn more
Wills and Trust for Parents
One coordinated plan where your Will and trust work together to protect benefits.
Learn more
Healthcare Directives
Name a trusted person to make medical decisions if you cannot communicate.
Learn more
ABLE Account
Save and pay for qualified disability expenses while protecting key benefits.
Learn more