Estate planning for disabled beneficiaries in Georgia comes with its own set of unique challenges, especially when it comes to ensuring their long-term care and financial stability. You want to provide for them without jeopardizing their eligibility for vital benefits like Medicaid or Supplemental Security Income (SSI).
Fortunately, there are estate planning tools available in Georgia specifically designed to help families navigate these complexities and secure their loved one’s future.
Let’s explore the options available to you and how they can help protect your loved one’s well-being.
Why a Special Needs Trust Is Essential for Disabled Beneficiaries
Leaving an inheritance directly to a disabled beneficiary might seem like the right thing to do, but it can inadvertently disqualify them from receiving essential government benefits. This is where a Special Needs Trust (SNT) becomes an invaluable tool.
A Special Needs Trust allows you to set aside money or other assets for your loved one while preserving their eligibility for Medicaid and SSI. A trustee manages the trust and uses the funds to cover expenses that enhance the beneficiary’s quality of life, such as medical care, therapy, or recreational activities not covered by government programs. This ensures that your loved one can enjoy a better quality of life without risking the loss of crucial benefits.
Understanding the Types of Special Needs Trusts in Georgia
When considering a Special Needs Trust in Georgia, there are two main types to keep in mind:
First-Party Special Needs Trust
This type of trust uses the beneficiary’s own assets, such as money from a lawsuit settlement or an inheritance. It is irrevocable, meaning you cannot change it once established. A key aspect of a first-party SNT is that after the beneficiary passes away, Medicaid uses any remaining assets in the trust to reimburse the cost of care provided.
Third-Party Special Needs Trust
This trust is funded by someone other than the beneficiary, typically a parent, grandparent, or other family member. One of the significant advantages of a third-party SNT is that, unlike the first-party trust, Medicaid does not have a claim on the remaining assets after the beneficiary’s death. Instead, these assets can be passed on to other family members or loved ones. Both types of trusts ensure that your disabled beneficiary receives the care and support they need without affecting their benefits.
ABLE Accounts: A Flexible Savings Tool
An ABLE account (Achieving a Better Life Experience account) is another useful option for planning for disabled beneficiaries. This type of account lets individuals with disabilities save money without affecting their eligibility for public benefits. Although annual contribution limits apply, ABLE accounts complement Special Needs Trusts by offering more flexibility in using funds to support the beneficiary’s needs.
Guardianship and Conservatorship in Georgia: Planning for Care and Decision-Making
In addition to financial planning, it’s essential to consider Guardianship and Conservatorship. In Georgia, a guardian handles personal care decisions, while a conservator manages financial matters.
Choosing the right person for these roles is a significant decision. Whether you select a trusted family member or a professional, it’s crucial to choose someone who understands your loved one’s needs and will act in their best interest. This ensures continuity of care and financial stability, providing peace of mind for you and security for your loved one.
Detailed Planning for Their Future Beyond Finances
Estate planning for a disabled beneficiary goes beyond just managing finances—it’s about ensuring comprehensive support for their future. This includes planning for medical needs, housing, daily care, and quality of life. An experienced estate planning attorney can guide you through creating a plan that covers all aspects of your loved one’s needs, ensuring they are well-supported for the long term.
We’re Here to Help Secure Your Loved One’s Future
Estate planning for disabled beneficiaries in Georgia requires thoughtful consideration and a strategic approach. If you’re ready to create an estate plan that cares for your disabled beneficiary without jeopardizing their benefits, we can help.
Call us today to learn more about your options and how we can assist you in securing a stable and supportive future for your loved one.
