The Miller Elder Law Firm explain what a First Party Special Needs Trust is. For assistance in setting up a trust, or determining which type of trust is best for you or your loved one, contact The Miller Elder Law Firm today.
“There’s what’s called a First-Party Special Needs Trust where you’re taking the money of the individual who is disabled, and you are putting it into a special needs trust for their benefit to purchase supplemental needs that their government benefits don’t already cover. With a First-Party Special Needs Trust, because it was the money of the disabled individual, there is a payback provision that is required. So the money is in trust. It’s for the disabled person’s benefit during their lifetime over and above the government benefits that they receive.
On their death, if there is money left in that trust, Medicaid does have a lien on it so the amount of money that Medicaid has paid out for their benefit over their lifetime has to be paid back. If there’s any money after that, it can go to loved ones. That’s only in a First-Party Special Needs Trust.”