Planning for the long-term care and financial security of a loved one with special needs can feel overwhelming—especially when government benefits like SSI and Medicaid are involved. The Theresa Third-Party Community Trust (TCT) was created to help families plan confidently for the future without jeopardizing essential public benefits.
What Is the Theresa Third-Party Community Trust?
The Theresa Third-Party Community Trust is a Third-Party Special Needs Trust that is pooled for investment and administrative purposes. It allows parents, grandparents, relatives, and others to set aside funds for a person with disabilities using assets that do not belong to the beneficiary.
Because the trust is third-party funded, it helps protect eligibility for means-tested government programs such as Supplemental Security Income (SSI) and Medicaid, while still allowing trust funds to be used for a wide range of supplemental needs.
Who Should Consider a Third-Party Community Trust?
This trust is often used by:
- Parents planning for the future of a child with special needs
- Grandparents who want to leave an inheritance without disrupting benefits
- Relatives, friends, or community members raising funds for a loved one
- Families looking to incorporate special needs planning into a broader estate plan
Key Benefits of the Theresa Community Trust
One of the most significant benefits of the Theresa Third-Party Community Trust is that there is no Medicaid payback requirement to New York State when the beneficiary passes away. This allows remaining trust funds to pass to named beneficiaries—such as family members—with a portion benefiting The Theresa Foundation.
Additional benefits include:
- Flexible funding options (lump sums, periodic deposits, or estate planning tools)
- Broader allowable expenses compared to self-funded trusts
- Professional trust administration and investment management
- Protection of public benefits while improving quality of life
How Can Trust Funds Be Used?
Trust funds may be used for expenses not covered by government assistance, including:
- Supplemental medical care and therapies
- Housing-related costs and living expenses (with certain SSI limitations)
- Transportation and travel
- Entertainment and recreational activities
- Attorney, guardian, and administrative fees
Additional Information
CLICK HERE for more information about the Theresa Third-Party Community Trust, including instructions, joinder agreement, fee schedule, and more.
If you want to provide for a loved one’s future while protecting vital benefits, the Theresa Third-Party Community Trust may be the right solution. To learn more or start the enrollment process, please contact us at TP*@***************on.org or 1-877-391-0390. We look forward to the opportunity to work with you.
Disclaimer: The information provided above is for general informational purposes only and is not legal advice.