Common Types of Trusts in Georgia

Trusts are common components of estate plans in Norcross and throughout Gwinnett County, and establishing a trust could be a good idea for you. A trust is a specific type of legal arrangement in which one party creates this particular kind of arrangement (this party is known as a “settlor” under Georgia law; this office likes to refer to this party as the “trustmaker” for clarity) to hold assets for the benefit of one or more other parties (the party or parties who benefit from the trust are known as “beneficiaries”). The assets are then managed by a party known as a “trustee,” who has a fiduciary duty.

In general, trusts in Georgia are either “revocable” (meaning the terms can be revised, or the trusts can be terminated) or “irrevocable” (meaning the terms of the trust cannot be changed once it is created). There are many different types of trusts that can be created under Georgia law, and these trusts serve different purposes. The following are some of the more common types of trusts that are part of estate plans in Georgia.

Revocable Living Trust 

A revocable living trust is a common way of ensuring that certain family members can benefit from the trust during your lifetime and that your surviving children or stepchildren (or other beneficiaries of your choosing) can easily receive the assets contained in the trust without going through probate. You can also change the terms during your lifetime to suit your needs.

Spendthrift Trust 

Spendthrift trusts are designed so that a beneficiary can only receive a certain amount of assets at a time, in order to control spending and access to money. The third-party trustee will control the assets to ensure that the beneficiary cannot use more than what is intended to be accessible.

Special Needs Trust 

Special needs trusts, or supplemental needs trusts, are designed to provide for adults who have disabilities that qualify them for public benefits without putting those public benefits at risk. Assets in a special needs trust do not count toward the beneficiary’s income or assets (since they are not owned by the beneficiary), so they can continue receiving benefits like Medicaid or Supplemental Security Income (SSI) payments.

Asset Protection Trusts

 These are irrevocable trusts that are typically established so that a person can be eligible for certain benefits without having to spend down assets. Medicaid asset protection trusts are especially common for older adults who need Medicaid to provide coverage for long-term care in a nursing home.

Contact a Gwinnett County Estate Planning Lawyer 

Trusts are a common component of many estate plans in Georgia, and they can serve a wide range of purposes. Whether you want a way to ensure that your beneficiaries receive your assets smoothly without going through the probate process, you want to mitigate estate taxes, or you want to ensure that a disabled adult loved one can benefit from your assets while maintaining eligibility for public benefits, a Gwinnett County estate planning attorney at Bowman Law Firm is here to help. We have years of experience serving clients in Norcross with various aspects of estate planning, and we can speak with you today about establishing a trust or creating other important estate planning documents.

Source:

law.justia.com/codes/georgia/title-53/chapter-12/