Choosing the right type of special needs trust is critical. The wrong choice can cost your family money and benefits.
First-Party Special Needs Trust
Also Called
Self-settled trust, d4A trust, payback trust
Funding Source
Beneficiary's own assets (inheritance, lawsuit settlement, divorce proceeds)
Key Feature
Must include Medicaid payback provision - remaining funds go to Medicaid at death.
Age Requirement
Beneficiary must be under 65 when established.
Who Can Create It
Parent, grandparent, legal guardian, or court.
Third-Party Special Needs Trust
Funding Source
Assets from someone other than the beneficiary (parents, family, friends)
Key Feature
No Medicaid payback required. Remaining funds go to chosen beneficiaries.
Flexibility
More options for how funds are used and distributed.
When Created
Can be created at any time, including in a will.
Which Do You Need?
If your disabled loved one is receiving money directly, you need a first-party SNT. For estate planning purposes, use a third-party SNT.
Expert Guidance
Pioneer Credit Solution helps you choose the right trust. Call 1-888-271-2293.