The main difference between First Party and Third Party Trust is how these trusts are funded. The First Party Trust is created based on a loved one with special needs (the beneficiary) receiving funds in their own name through inheritance or lawsuit. The Third-Party Trust is funded by someone other than the beneficiary. Another big difference is what happens to the funds after the beneficiary passes away. In a First Party Trust, the remaining assets in the Trust may be required to go to the government as reimbursement for the cost of received medical care. In a Third Party Trust, the funds can be passed to whoever is chosen by the Trust creator. Watch my YouTube video “The difference between First Party and Third Party Special Needs Trusts” to learn more.