Special or Supplemental Needs Trusts
The two main types of special needs trusts are known as a Third Party Special Needs Trust or a First Party Special Needs Trust. The main difference between the two is that the Third Party Trust is created and funded with assets that do not and never did belong to the primary and initial beneficiary. A First Party Special needs trust is funded with the beneficiary’s assets. Both trusts are used to shield the assets from counting as a resource and as income (generated in the trust) for purposes of qualifying for government benefits, such as Medicaid. Special needs trusts are also beneficial for protecting the assets for the benefit of the beneficiary.
The Estate Plan
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