Master Special Needs Trusts With Top Attorney Secrets

Types of Special Needs Trusts

There are primarily three types of Special Needs Trusts: First-Party, Third-Party, and Pooled Trusts. Each serves a unique purpose and caters to different financial scenarios.

1. **First-Party Special Needs Trusts**: These are established using the assets of the individual with special needs, often from a personal injury settlement or inheritance. They are designed to ensure that the beneficiary remains eligible for government benefits. Upon the beneficiary's death, any remaining assets are typically used to reimburse the state for Medicaid expenses¹.

2. **Third-Party Special Needs Trusts**: Funded by someone other than the beneficiary, such as parents or grandparents, these trusts do not require Medicaid reimbursement. They are often used to pass down family assets while maintaining the beneficiary's benefit eligibility².

3. **Pooled Trusts**: Managed by non-profit organizations, pooled trusts combine resources from multiple beneficiaries for investment purposes while maintaining individual accounts. This option is particularly beneficial for those with smaller amounts to invest, as it offers professional management and cost efficiency³.