A Trust That Protects Benefits — and Plans for the Person Behind Them

A properly drafted special needs trust keeps your child's government benefits intact while giving them access to the supplemental support that makes a full life possible. One drafting mistake can undo both.

What a Special Needs Trust Can — and Cannot — Pay For

Every parent we work with asks this question, and the answer matters for how the trust is structured and how the trustee manages distributions over time.

 

A special needs trust is designed to supplement government benefits, not replace them. That means the trust can pay for things Medicaid and SSI don't cover:

 

  • Clothing, personal care items, and household goods
  • Recreation, travel, and entertainment
  • Electronics, communication devices, and adaptive technology
  • Therapies, educational programs, and vocational training not covered by benefits
  • Transportation and vehicle-related costs
  • Experiences and enrichment that improve quality of life

 

What a trust generally cannot do without risking benefit eligibility: make direct cash distributions to the beneficiary, or pay for food and shelter in ways that reduce SSI payments. These aren't arbitrary rules — they reflect how SSI and Medicaid calculate eligibility, and a trustee who doesn't understand them can inadvertently trigger a reduction or loss of benefits.

 

This is why trustee selection and trustee education are part of what we address in the planning process, not afterthoughts.

Flat Fees, So You Can Focus on the Plan

Families raising a child with a disability are often managing significant financial and logistical demands. The last thing you need is an attorney relationship where every question feels like a billing event.

 

We work on a flat fee basis for special needs trust drafting. You'll know the cost before we begin, and you can ask every question you have throughout the process without watching the clock. That's not a promotional offer — it's simply how we think an attorney-client relationship should work.

Why Drafting Quality Is the Whole Game

Georgia families sometimes find SNT templates online or work with general practice attorneys who draft trusts infrequently. The risk isn't that the document looks wrong — it's that the error is invisible until a benefits review, a trustee distribution, or a death triggers scrutiny.

 

Common mistakes in DIY and template-based trusts include:

 

  • Failing to include language that meets federal SSI resource exclusion requirements
  • Incorrect trustee discretion provisions that allow distributions that reduce benefits
  • Missing or improper Medicaid payback language in first-party trusts
  • No guidance for the trustee on permissible vs. impermissible distributions
  • Provisions that conflict with Georgia probate or trust law

 

By the time these problems surface, the parent who created the trust may no longer be alive to fix it. We draft special needs trusts that are built to hold up — not just at signing, but for the decades they'll be in operation.

 

We're also members of the National Academy of Elder Law Attorneys (NAELA), a professional organization focused on exactly this area of practice.

Two Types of Special Needs Trusts — and Why the Difference Matters Enormously

Not all special needs trusts are the same, and choosing the wrong structure — or using a template that doesn't distinguish between them — can have consequences that don't surface until years after you're gone.

Third-Party Special Needs Trust

A third-party SNT is funded with assets belonging to someone other than the beneficiary — typically a parent, grandparent, or other family member. This is the most common structure for estate planning purposes. When properly drafted, assets held in a third-party trust do not count as a resource for Medicaid or SSI eligibility. Critically, there is no Medicaid payback requirement at the beneficiary's death — remaining funds can pass to other heirs.

First-Party Special Needs Trust

A first-party SNT (also called a self-settled trust) is funded with assets that belong to the person with disabilities — an inheritance received outright, a personal injury settlement, or similar funds. These trusts also preserve benefit eligibility, but they carry a Medicaid payback provision: when the beneficiary dies, the state must be reimbursed for Medicaid benefits paid during their lifetime before any remaining assets pass to family.

 

Understanding which structure applies to your situation is not a detail — it's the foundation the entire plan rests on. Georgia does not impose a special state-level form requirement for special needs trusts, but federal and Georgia-specific drafting standards are exacting. A trust that doesn't meet those standards can be treated as a countable resource, disqualifying your child from the very benefits the trust was meant to preserve — often without anyone realizing it until it's too late.

Person in a flowing white dress twirls in a sunlit desert canyon, sand swirling around them

A Trust for the Money. A Plan for the Life.

The legal document is the vehicle. What makes it work for your child is the context around it — who they are, how they communicate, what brings them comfort, who the people in their life are, and what a good day looks like for them.

 

We pair every special needs trust with a letter of intent: a non-binding companion document that captures your child's routines, preferences, medical history, and the wisdom you've accumulated as their parent. A successor trustee or future caregiver reading that document will understand your child as a person, not just a beneficiary.

 

For families who want to build additional supplemental savings alongside a trust, ABLE accounts offer a tax-advantaged option that works within SSI and Medicaid rules for qualifying individuals.

Frequently Asked Questions About Special Needs Trusts in Georgia

  • How does a special needs trust work in Georgia?

    A special needs trust holds assets for the benefit of a person with disabilities without counting those assets toward Medicaid or SSI eligibility. The trustee manages and distributes funds for approved supplemental expenses — things government benefits don't cover — while the beneficiary continues to receive their benefits. Georgia follows federal SSI and Medicaid rules for trust eligibility, with no separate state form requirement, but drafting must meet specific legal standards to be effective.

  • What is the difference between a third-party and first-party special needs trust?

    A third-party SNT is funded with assets from someone other than the beneficiary — typically a parent or grandparent — and has no Medicaid payback requirement at death. A first-party SNT is funded with the beneficiary's own assets, such as an inheritance or settlement, and does require Medicaid payback when the beneficiary dies. The distinction affects how the trust is structured, who can fund it, and what happens to remaining assets.

  • Can I use a template to create a special needs trust?

    Templates rarely account for the specific federal and Georgia requirements that determine whether a trust actually protects benefit eligibility. A trust that looks complete on paper may still contain provisions that trigger a resource determination or allow distributions that reduce SSI payments. Because these issues typically surface years after signing — often after the parent's death — the cost of getting it wrong is much higher than the cost of getting it right the first time.

  • What is a supplemental needs trust, and is it the same as a special needs trust?

    Yes — supplemental needs trust and special needs trust refer to the same legal structure. Both terms describe a trust designed to provide for a person with disabilities without disqualifying them from means-tested government benefits like Medicaid and SSI. The terms are used interchangeably in Georgia and across most of the country.

  • Who should be the trustee of a special needs trust?

    A trustee must understand the rules around permissible distributions — because the wrong distribution can reduce or eliminate the beneficiary's benefits. Many families name a trusted family member as trustee, sometimes paired with a professional co-trustee or corporate trustee for oversight. We discuss trustee selection as part of the planning process, and the letter of intent we prepare gives the trustee the context they need to make good decisions over time. Does a special needs trust work alongside an ABLE account? Yes, and for many families, using both makes sense. An ABLE account allows the beneficiary or their family to save money in a tax-advantaged account that doesn't count against SSI asset limits (up to applicable thresholds). A special needs trust handles larger assets and estate planning goals. The two strategies complement each other and can be coordinated as part of a comprehensive plan.

Ready to Build a Plan Your Child Can Count On?

A special needs trust is one of the most important decisions a parent can make — and one of the few that genuinely cannot be undone easily once the wrong version is in place. We serve families throughout Fayette County and Coweta County, with in-person appointments at our Tyrone office and virtual consultations available across Georgia.