Special Needs Answers
Why You Should Choose a Third-Party Trust
When parents ponder how to provide for their child with special needs, they sometimes forget one of the key advantages of...
Read moreCan I Put My Inheritance in a Third-Party SNT?
- June 4th, 2024
Q
I'm on Medicaid and SSI. I'll be receiving a financial inheritance within the next year or less. Can I deposit my own inheritance in a Third-Party Special Needs Trust and spend it on myself? I really need to be able to keep my Medicaid and spend my inheritance on myself.
A
No. By definition since it’s your money it’s a self-settled trust, not a third-party trust. But if you are disabled and under the age of 65, you can transfer the funds into a (d)(4)(A) trust, which is just like a third-party trust except for the Medicaid payback provision from any funds remaining upon your death.
Harry S. Margolis practices elder law, estate, and special needs planning in Boston and Wellesley, Massachusetts. He is the founder of ElderLawAnswers.com and answers consumer questions about estate planning issues here and at AskHarry.info.