Third-party trust

{
  "id": "MLC-T-LAW-005458",
  "term": "Third-party trust",
  "field": "Law",
  "definition": "A trust funded with assets belonging to someone other than the beneficiary, as opposed to a self-settled trust funded with the beneficiary's own money. The settlor transfers property to a trustee, who manages it under the trust instrument for the beneficiary and owes fiduciary duties. Because the assets were never the beneficiary's, a third-party special needs trust generally need not repay the state Medicaid program from what remains at the beneficiary's death.",
  "url": "https://mlchart.com/terminology/law/third-party-trust/"
}