The Complete Guide to Creating a Special Needs Trust: Georgia Laws, Requirements, Costs, & More

When parents or family members want to help a disabled relative, they typically go with a third-party trust. There is no limit on the types of assets that can be under the trust – houses, stocks, investments, etc. are included.

Like a first-party trust, the assets will not affect the special needs individual receiving public assistance benefits. The money can be used for daily or supplemental needs not covered by the government money.

Additionally, a third-party trust does not have to be paid back upon the beneficiary’s death. It can instead be transferred to a family member or given to charity.

A pooled trust, unlike the other options, functions more like a charity and allows several beneficiaries to pool their money together while keeping different accounts. When a beneficiary dies, the money in their specific account goes back to the government or goes to the organization that has managed the trust.

A special needs trust can be established by just about anyone. If drafted well according to tax purposes, the donor’s taxes may be reduced. Another purpose of a trust is to ensure that an elderly person’s long-term care covered by Medicaid can still occur while money is placed into a well-drafted special needs third-party trust — this will help make sure they are taken care of in the future. If you are unsure whether this type of trust fits your unique situation, don’t hesitate to reach out to a Georgia estate planning expert.

There are certain expenses a trust should not pay for unless otherwise approved by an attorney. These include:

• Groceries or restaurant meals.
• Any cash.
• Rent or mortgage.
• Property tax, homeowner’s insurance, homeowners association dues, or condo dues.
• Utilities or utility hookups.

Despite these guidelines, a trustee may decide whether the trust making the above payments will be worth the loss of income. If you believe your loved one will benefit from having a trust – whether it be first-party, third-party, or pooled – speak with an experienced attorney. They can help you determine what is best for you and help you take the next step.

Special Needs Trust Form

Keep in mind that no special needs person is alike, and all cases are different. As such, all special needs trusts will also be different. To find out what type of trust would work best for your loved one, it’s best to meet with a skilled special needs planner who has knowledge and experience in this area. This is especially important if you are pursuing a first-party trust, which can be somewhat complicated.

If you search the Internet for a form to write your own trust, you probably will not find much. This is because high-quality trusts are written by lawyers.

Lawyers typically write these trusts because technical terms should be used, and it should be precise. To keep the money from becoming the beneficiary’s property, language should be used that follows Georgia estate law.

In any situation, when it comes to something as important as your beneficiary’s future, it may be worth the cost to seek the advice of an attorney. At Perigon Legal Services, we’re dedicated to making the estate planning process as simple and affordable as possible. We know how delicate these topics are for the families we work with, so we’ve made it our mission to provide reliable, client-centered legal services to help protect what matters most.

Our office is located in the heart of Marietta, Georgia just outside Atlanta, and we’re ready to take your call. If you’re ready to begin creating a comprehensive special needs trust, contact us today to schedule a consultation. We look forward to assisting you!