Understanding Different Types of Special Needs Trusts in Georgia
When an adult is disabled and relies on certain types of public benefits such as Medicaid or Supplemental Security Income (SSI) payments that are based on the adult having limited assets and resources, establishing a special needs trust (SNT) is essential for any inheritance, insurance payout, or damages award that will soon come to that disabled adult. A special needs trust is a specific type of irrevocable trust that is available in Georgia for the sole benefit of a disabled adult that allows the disabled adult to remain eligible for government programs while still having access to the additional funds (from the inheritance or other payout) to cover their extra needs beyond the basic care provided by public benefits.
Depending on whether you are establishing a special needs trust for yourself or for a disabled adult loved one, there are different types of special needs trusts for you to know about. Our Gwinnett County estate planning attorney can explain in more detail below.
Third-Party Special Needs Trust
When most people think of a special needs trust, they are thinking about a third-party special needs trust that is established by a family member for a disabled adult loved one. Under Georgia law, a third-party special needs trust can be established by a parent, grandparent, or legal guardian of the disabled adult for the sole benefit of that disabled individual.
A third-party special needs trust must be for the sole benefit of the disabled adult named as the beneficiary, and the trust must be set up so that the state of Georgia will receive all of the remaining amount in the trust upon the disabled beneficiary’s death, up to the amount paid for the disabled adult by the state for medical assistance (i.e., for the state to recover the costs of benefits paid out for the disabled adult.
First-Party or Self-Settled Special Needs Trust
A special needs trust can also be a first-party or self-settled trust if you are a disabled adult. When is a first-party SNT helpful? Most often, a disabled adult who has legal capacity but relies on public benefits such as Medicaid and SSI will create a special needs trust to hold assets that have come from an insurance payout or court damages award after a serious accident and claim that left them disabled.
With a first-party SNT, you can still benefit from the payout or damages award without harming your eligibility for government programs.
Contact a Norcross Estate Planning Attorney for Assistance Creating a Special Needs Trust
Special needs trusts can be extremely beneficial for any disabled adult who relies on certain public benefits. Whether you are disabled yourself and want to create a self-settled SNT or you want to establish a special needs trust for a disabled child or grandchild, an experienced Norcross estate planning lawyer at Bowman Law Firm can help. Do not hesitate to reach out to our firm to find out more about special needs trusts in Georgia and how we can assist you in establishing a SNT and any other components of your estate plan. Contact our firm today.
Sources:
law.justia.com/codes/georgia/title-53/
pamms.dhs.ga.gov/dfcs/medicaid/2346/
