Consider a Third Party Special Needs Trust.
A Third Party Special Needs Trust helps you provide financial security for a loved one with a disability—without jeopardizing important government benefits. In contrast, leaving money directly to loved ones can make it impossible for them to get benefits, including Medicaid.
A Third Party Special Needs Trust is funded by someone other than the beneficiary – gifts/inheritances from a parent, grandparent, other family member or friend. Gifts into the trust can be made throughout the beneficiary’s life. Friends and family can even name this type of Special Needs Trust in their will, thereby contributing additional funds at their death.