Third Party SNT

Can Someone Else Set Up the SNT?

While Special Needs Trusts (“SNT”) are often set up in special situations with the beneficiary’s own assets, called a “First-Party” or self-settled special needs trust, they are often established by others, commonly a parent or grandparent who is concerned about the special needs beneficiary.  These SNTs are referred to as Third-Party Special Needs Trusts.

In contrast to First-Party SNTs, an Supplemental Needs Trust set up by a third-party can also have beneficiaries other than the disabled beneficiary.  So, for example, you can designate to whom you want the trust assets to pass in the Third-Party SNT upon the primary beneficiary’s death.  You do not want the trust to reimburse the state upon the beneficiary’s death, which the First-Party SNT must do.

20150831_065000There are still many restrictions that must be complied with in order to not lose important government benefits for the beneficiary.  Because of the specialized nature of SNT, whether First-Party or Third-Party, and the importance of getting it right, it is important to have the trust drafted by an attorney.

If you have a loved one with special needs, please call to discuss how an SNT can make a difference in his or her life.

(702) 894-4110

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