While a Last Will and Testament and Revocable Living Trust have a ton of benefits when estate planning, these are not enough when planning for a family member with special needs. Say for instance you directly pass an inheritance to your special needs child while they are collecting SSI and Medicaid. This money would go directly to your special needs beneficiary, meaning they would own the money and assets. As a result, these new funds could be counted as income or financial resources by the government assistance programs causing your loved one to lose their benefits. Obviously, this situation isn’t ideal. The best way to avoid a scenario like this is to create a Third Party Trust for your special needs child so their inheritance won’t count against their benefits.