Third Party Pooled Flexible Spending Trust

A new special needs trust

The Disability Foundation is pleased to offer a third-party trust for those wishing to improve the quality of life for someone they love living with a disability. Now, anyone, including parents, other relatives or friends can contribute money to a trust and provides financial stability without compromising public benefits for an individual living with a special need.

How it works

The trust is created with money provided by anyone other than the beneficiary, such as parents, other relatives, or friends of the beneficiary. The beneficiary cannot create their own third party trust, nor can any monies they have ever owned be deposited into the trust. The trust can be created during the grantor’s lifetime or as a part of the last will and testament. Since the monies never belonged to the beneficiary, upon their death, there is no Medicaid Payback, and the remainder beneficiaries may receive the funds. Examples of funding include gifts directly to the trust, an inheritance the Grantor wishes to leave to the beneficiary (the beneficiary has not yet received the inheritance), or life insurance policy proceeds, all directly directed to the trust.

For more information about this or any of our pooled trust options connect with us.