If you looking to create a Third Party Special Needs Trust for a relative who is receiving government benefits, I would strongly recommend that you find someone who focuses in this area. Terminology can be very confusing as many people mix up First Party Special Needs Trusts with Third Party Special Needs Trusts. The biggest difference is that First Party Special Needs Trusts (also known as Self Settled Special Needs Trusts) require that Medicaid be paid back when the beneficiary dies, a Third Party Special Needs Trust does not have that requirement.
Special Needs Trust Administration of all Special Needs Trusts can be very complex because those trusts are limited in what they can pay for by statute. Special Needs Trusts can generally not pay for food, shelter, electricity, gas or water and it may not pay for anything that can be converted into food, shelter, electricity, gas or water. Additionally, cash should almost never be distributed to a beneficiary from the trust and there are special rules about a trust owning a home.