A third-party special needs trust is a trust established for persons with special needs, usually with someone else’s (a “third party’s”) money. Often this type of trust is set up by a parent or grandparent for a child with a disability, but there are no limits on who can establish a third-party special needs trust.
Why Set Up a Third-Party Special Needs Trust?
If you have a child with special needs, setting up a special needs trust is a good way to make sure funds are available over and above what Medicaid and SSI provide. The funds in the trust are not included as assets of the person with special needs, but the trust funds may be used to support the special needs individual during their lifetime.
Third-party special needs trusts are not payback trusts. That means that when the person with special needs passes away, the funds in the trust can go to other beneficiaries instead of going back to the State of Ohio to pay for medical costs.
For parents with children or grandchildren who have special needs, it is crucial to set up this type of trust properly. To learn more about third-party special needs trusts and to discuss setting one up, schedule a consultation at one of Solomon, Steiner & Peck, Ltd.’s three convenient law offices in northeast Ohio. Our experienced attorneys can help you determine how to effectively establish a trust to support your loved one.