A Third Party Special Needs Trust must be established by someone other than the person with a disability. Typically, it is parents or grandparents who create this type of trust for the benefit of their child or grandchild. Once created, this trust can receive funds, such as inheritances or gifts from anyone, including family members, friends, and others, without affecting the beneficiary's eligibility for government benefits like Medicaid or Supplemental Security Income (SSI). The primary purpose of the trust is to supplement and enhance the beneficiary's quality of life by covering needs that government benefits do not provide. 

          One significant advantage of a Third Party Special Needs Trust is that Medicaid seek reimbursement from it upon the beneficiary's death (unlike a First Party Special Needs Trust). This means that any remaining funds in the trust after the beneficiary passes away can be distributed according to the wishes of the trust creator, rather than being used to repay Medicaid. 

          A Third Party Special Needs Trust can be established through a will, known as a testamentary trust, or as a stand-alone trust. Each method has its own benefits and drawbacks, so it is important to consult with an attorney to determine which option best suits your family's unique situation and goals.