MIssion and vision
What Is a Third-Party Special Needs Trust?
A Third-Party Special Needs Trust is a legal tool that allows family members or other loved ones to leave money or assets for a person with a disability without jeopardizing their eligibility for important “means-tested” government benefits such as SSI and Medi-Cal. This type of trust is funded with assets that belong to someone other than the individual with the disability—typically parents, grandparents, relatives, or other loved ones. A Third-Party Special Needs Trust helps provide financial security and enhanced quality of life while protecting access to essential public benefits.
How Does It Work?
Assets intended for the beneficiary are placed into the trust rather than being given directly to the individual. A trustee manages the funds and uses them to pay for approved supplemental expenses that support the beneficiary’s needs and quality of life. Funds from the trust may help pay for:
*Housing-related expenses *Education and vocational training
*Transportation
*Technology and communication devices
*Recreation and social activities
*Personal care items and other quality-of-life needs
Who Might Consider a Third-Party Special Needs Trust?
A Third-Party Special Needs Trust may be appropriate for families who:
- Want to leave an inheritance to a loved one with a disability
- Wish to preserve SSI, Medi-Cal, or other public benefits
- Want professional management and oversight of trust assets
- Desire long-term financial planning and stability for their loved one
This type of trust is commonly established by:
- Parents
- Grandparents
- Siblings
- Other relatives or loved ones
PLAN of California Master Pooled Special Needs Trust
Proxy Parent Foundation serves as trustee of the PLAN of California Master Pooled Special Needs Trust, which accepts both third-party (family-funded) and first-party (self-settled) Special Needs Trusts.
Our pooled trust is open to individuals of all disabilities and all ages with no asset minimum. Each beneficiary has their own separate sub-account within the trust, professionally managed to help preserve public benefits and enhance quality of life.
In addition to trust administration, Proxy Parent Foundation provides compassionate, family-like service focused on dignity, stability, and lifelong care.
Planning for the Future
A Third-Party Special Needs Trust can provide peace of mind to families who want to ensure their loved one is protected and cared for in the future.
If you would like to learn more about whether a Third-Party Special Needs Trust may be right for your family, please contact Proxy Parent Foundation for more information.
