Key Takeaways | What Is a Special Needs Trust?
Special needs trusts are designed to protect the benefits of someone who is disabled and on Supplemental Security Income or Medicaid.
There are two types of special needs trusts: first-party and third-party.
First-party special needs trusts are for individuals who receive an inheritance or settlement, and want to maintain their benefits.
Third-party special needs trusts are set up by someone else, such as a family member, to provide additional funds for the disabled person.
The Alabama family trust is a pooled special needs trust that can be used for both first-party and third-party situations.
Episode Notes:
In this episode, attorney Bill Miller discusses special needs trusts—also known as supplemental needs trusts—which are designed to protect the benefits of someone who is disabled and on Supplemental Security Income or Medicaid. He explains the two types of special needs trusts: first-party and third-party. First-party special needs trusts are for individuals who receive an inheritance or settlement, and want to maintain their benefits.
Third-party special needs trusts are set up by someone else, such as a family member, to provide additional funds for the disabled person. Bill Miller also mentions the Alabama family trust, a pooled special needs trust that can be used for both first-party and third-party situations.
Notable Moments:
(00:00) Introduction to Special Needs Trusts
(08:15) First-Party Special Needs Trusts