Third Party Trusts


Third Party Trusts

“My sister suffers from schizophrenia and I have been able to rest easy knowing Howard and the staff will wisely manage the money my parents left for her.”

John D.

IDPT Client

Family (other than the disabled person’s spouse), friends and others may choose to fund a third-party special needs trust for the disabled person, either by transferring their own cash or other assets or providing for the transfer via a will, trust or life insurance policy. Third-party trusts are often funded upon the death of the person who established the SNT.

Third party special needs trusts do not jeopardize means-tested government benefits, such as Medicaid, and are not subject to Medicaid payback requirements.

Third-party trusts can be stand-alone trusts or set up as a sub-account of the Illinois Disability Pooled Trust.

Advantages of Participating
in the Pooled Trust

The IDPT’s master pooled trust agreement has be pre-approved by the Social Security Administration

Reduced trustee fees

Access to institutional level “pooled” investment opportunities

Ease and efficiencies in ensuring compliance of trust documents

Significant savings due to the elimination of the need for a surety bond in a guardianship case