Which statement is true regarding a beneficiary's ability in a third-party self-settled trust?

In the context of a third-party self-settled trust, the statement that a beneficiary cannot direct fund disbursement is accurate due to the legal framework surrounding such trusts. In many jurisdictions, including Florida, a self-settled trust generally refers to a trust where the individual creates the trust for their own benefit. However, even in these cases, the beneficiary does not retain control over how the trust funds are distributed.

The primary purpose of this limitation is to protect the trust assets from creditors and to help meet criteria that allow the settlor (the person who created the trust) to maintain some level of eligibility for government assistance programs. By restricting the beneficiary's ability to direct distributions, the trust ensures that these funds cannot be easily accessed by creditors, which is a critical component in maintaining the protective nature of the trust.

In contrast, the other options imply a level of control or access to the funds that does not align with the legal understanding of third-party self-settled trusts. Therefore, the correct statement highlights the limitations placed on beneficiaries regarding fund disbursement, which is essential for the trust’s intended purpose.