Who Should Create a Special Needs Trust?
What is a Special Needs Trust (SNT) in Georgia, and who should create one? Special Needs Trusts are designed specifically for disabled adults to provide for their additional needs beyond the benefits they receive from government programs without impacting their eligibility for those government programs. Special Needs Trusts can be self-funded by a disabled adult, and these SNTs are known as first-party SNTs. This type of trust can also be funded by a close family member for the sole benefit of a disabled child, grandchild, or ward of a guardian, which is known as a third-party SNT.
Who should consider creating a Special Needs Trust? Anyone who is disabled themselves or has a close family member who is disabled may want to consider setting up a SNT. Our Norcross estate planning lawyers can provide you with more information.
Parents, Grandparents, or Guardians of a Disabled Adult Should Consider Establishing a Third-Party SNT
Third-party SNTs can be established in Georgia by a parent, grandparent, or guardian of a disabled person for the sole benefit of that disabled person. If you are in one of these positions and have a disabled child, grandchild, or ward, the purpose of creating an SNT would be to ensure that your disabled loved one can still be eligible to receive public benefits while having access to extra resources from you. Since an SNT is not owned by the disabled person, the assets held in the trust do not technically belong to them and cannot be counted for purposes of public benefit eligibility.
The trust must be funded by the party creating the trust for the sole benefit of the disabled adult, and the trust must also be set up so that any remaining assets held within it revert to the state after the disabled adult’s death to offset money paid for the disabled adult’s medical care and related benefits.
Disabled Adults Who Inherit Assets or Obtain Assets in a Settlement Should Consider Creating a First-Party SNT
If you are disabled and currently receive benefits through Medicaid, Supplemental Security Income (SSI), or other public benefit programs that are based on your having limited resources, inheriting assets or receiving assets through a personal injury settlement could affect your continued eligibility for those public benefits. In order to prevent losing eligibility, you may want to consider creating a first-party Special Needs Trust. A first-party SNT will need to be an irrevocable trust that you set up to provide for your additional needs without affecting your public benefit eligibility. Like a third-party SNT, the trust must ensure that any remaining amount in the trust goes to the state after your death to pay for the benefits you received.
Contact a Gwinnett County Estate Planning Lawyer
Whether you want to find out more about creating a first-party SNT for yourself or you want to establish a third-party SNT for a disabled loved one, it is important to seek legal advice about the next steps you should take. An experienced Gwinnett County estate planning attorney at Bowman Law Firm can speak with you today to learn more about your SNT needs and to assist you with the creation of a Georgia SNT. We can also answer any questions you have about SNTs or trusts more broadly. Contact us for additional information about how we can assist you.
Sources:
law.justia.com/codes/georgia/title-53/chapter-12/
pamms.dhs.ga.gov/dfcs/medicaid/2346/
