If your loved one has special needs and you’re making decisions about how to handle his or her financial future, in your research you may have come across an account called a third-party special needs trust. These types of trusts can be great for individuals with special needs who are unable to earn an income on their own.
Read on to learn more about what a third-party special needs trust is and how it can help individuals with special needs.
A Third-Party Funds This Type of Special Needs Trust
Instead of the individual with special needs funding the trust with their own money, third-party special needs trusts are established and maintained using assets provided by a third-party, such as:
- Family members,
- Friends, or
- Another third-party other than the individual with special needs.
The Benefits of Third-Party Special Needs Trusts
There are two primary benefits of opening a third-party special needs trust for your loved one with disabilities, including:
- Helping your loved one financially while you are alive.
- Managing an inheritance for your loved one when you pass away.
How Third-Party Special Needs Trusts Can Be Funded
There are a number of ways to fund a third-party special needs trust, including:
- As a beneficiary of a life insurance policy.
- Owning assets such as real estate or investments.
- Receiving benefits from retirement accounts.
Fortunately, there are no limits regarding the size of a third-party special needs trust, and the assets are available to be used for almost anything your loved one needs to supplement his or her government benefits.
We’re Here to Help Special Needs Individuals and Their Families
If you would like to establish a third-party or another type of special needs trust for your loved one, you’re in the right place. Our skilled team is ready and willing to help you with your financial future needs now.
Call Legacy Enhancement Trust today at (888) 988-5503 to learn how we may assist you!