What is the difference between a first party special needs trust and a third party special needs trust?
A first party special needs trust is set up with funds of the person who is the beneficiary of that trust. A third party special needs trust is set up with funds other than those of the person who is the beneficiary of that trust. It is set up by a third party, whereas a first party special needs trust is set up through the assistance of the person who’s going to benefit from the trust.