A Georgia Estate Planning Attorney Helping You Establish A Trust With Confidence

• Revocable living trusts
• Irrevocable trusts
• Special-needs trusts
• IRA trusts
• 401(k) trusts
• Irrevocable life insurance trusts
• Charitable remainder trusts
• Domestic asset protection trusts
• Veterans trusts
• QTIP trusts
• Miller trusts or qualified income trusts
• Qualified personal residence trusts
• Dynasty trusts
• Intentionally defective grantor trusts
• Offshore trusts

Once we’ve helped you identify and establish the type or types of trusts that are right for you, we’ll be here to answer your questions and support you in managing the trust(s) during your lifetime. We also help trustees understand their fiduciary duties and provide practical pointers on asset investment, trustee powers and other issues that minimize the risk of trust disputes and trust litigation.

Why Use Trusts In Estate Planning?

“My estate isn’t large enough to justify the expense and hassle of setting up a trust…I’d like to establish a trust but haven’t because I don’t want to give up control of my assets.”

If either of these thoughts has occurred to you, you’re not alone – these are common misconceptions. The truth is that trusts are incredibly useful estate planning tools most people can benefit from, regardless of the size of the estate involved.

How so? To start with, a skillfully drafted trust can:

• Avoid thousands of dollars in probate costs
• Protect your privacy
• Pass wealth down through successive generations (lessening tax liability)
• Safeguard assets from grabs by spouses and creditors

You can even use a trust to protect those assets from a beneficiary’s own human shortcomings with respect to drug and alcohol use, gambling habits or other personal issues.

Georgia trust attorney Russell Hodges can also create family limited partnerships and protected LLCs that comply with the laws of other states so you can gain even more protection for your business and other assets from creditors or divorcing spouses.

What Is The Difference Between A Revocable Trust And An Irrevocable Trust?

A revocable trust allows the trust creator (grantor) to maintain control over the trust assets during their lifetime, meaning they can modify, amend or revoke the trust as needed. This flexibility is often appealing to individuals who want to retain access to their assets. However, because the grantor maintains control, the assets within the trust are still subject to estate taxes and creditor claims.

In contrast, an irrevocable trust cannot be modified or revoked once it has been established. This restriction may seem limiting, but irrevocable trusts offer significant benefits like protection from creditors, lower estate taxes and the ability to safeguard assets for future generations.

What Are Special Needs Trusts In Georgia?

Special needs trusts (SNTs) in Georgia are legal arrangements that allow people living with disabilities to receive financial support without affecting their eligibility for government benefits such as Supplemental Security Income (SSI). These trusts help enhance a beneficiary’s quality of life by covering expenses beyond basic needs.

Georgia laws allow various types of special needs trusts, and our attorney can help establish the right type depending on your circumstances. These types include:

• Third-party special needs trusts: These trusts are funded by someone other than the beneficiary (for example, parents) for their child living with disabilities.
• First-party special needs trusts: These trusts are funded using the beneficiary’s own assets, such as inheritance.
• Pooled trusts: Pooled trusts are managed by nonprofit organizations. These types combine the resources of multiple beneficiaries for investment and administrative purposes, while still maintaining separate accounts for each person with disability.

Our attorney listens to your needs and helps you determine the suitable type of trust you may need.

Who Can Qualify For A Special Needs Trust?

Under Georgia law, people with physical disabilities or mental disabilities and those with chronic medical conditions may qualify for a special needs trust. For first-party special needs trusts, the beneficiary must generally be under the age of 65 at the time the trust is created. However, third-party trusts do not have this age limitation.

Conditions that may qualify a person for a special needs trust include, but are not limited to:

• Developmental disabilities: Conditions that affect daily functioning and require lifelong support, such as autism spectrum disorder
• Physical disabilities: Disorders like cerebral palsy or muscular dystrophy
• Mental health issues: Chronic psychiatric disorders such as schizophrenia
• Sensory impairments: Significant vision or hearing loss that impacts independence
• Cognitive illnesses: Conditions like early-onset Alzheimer’s disease or dementia

Many other conditions may qualify, depending on how they impact a person’s ability to function. Our lawyer can evaluate eligibility and establish a trust that fully complies with Georgia law.

How Can A Beneficiary Use Special Needs Trust Assets?

Special needs trusts can cover a wide range of supplemental expenses, including:

• Medical and therapeutic needs
• Personal care and support
• Lifestyle and education
• Transportation
• Home modifications
• Administrative costs

Certain expenditures, such as payments for rent, are restricted as they may lower monthly SSI payments. Our lawyer can provide you with the legal support you need to protect your loved one’s future.

Steps For Setting Up A Trust Fund

Setting up a trust fund involves thoughtful planning to make sure your assets are distributed according to your wishes and that your beneficiaries are covered. Here are some of the key steps:

• Determine your trust’s purpose: Define your goals, whether to protect assets from creditors, avoid probate or provide for a child, vulnerable adult or other beneficiaries.
• Choose the right type of trust: Based on your objectives, choose between a revocable trust for flexibility or an irrevocable trust for protection. Other types, like special-needs or charitable trusts, may also suit your needs.
• Select a trustee: Pick someone you trust to manage the assets. For a revocable trust, you can serve as your own trustee. An irrevocable trust will require a third-party trustee.
• Draft the trust agreement: This legal document outlines how the trust operates, who the beneficiaries are and the terms for asset distribution.
• Fund the trust: Transfer assets like real estate or investments into the trust’s name. This step is vital for the trust to be effective.
• Review the trust: For a revocable trust, make adjustments as needed. With an irrevocable trust, regular communication with your trustee helps manage the assets as intended.

As you can see, a well-planned trust can help you reach many estate planning goals, from wealth preservation to providing long-term support for those you love.

Trusts For IRAs: Protecting Retirement Assets For Future Generations

Individual retirement accounts (IRAs) often represent a significant portion of a person’s overall wealth. In many situations, naming a trust as the beneficiary of an IRA can help control how those funds are distributed and protect them for future generations.

How Can An IRA Be Inherited?

When an IRA owner passes away, the assets remaining in the account transfer directly to the beneficiary named on the IRA beneficiary designation form. This transfer occurs outside of the will or probate process. Many individuals choose to name a spouse, children or other relatives as beneficiaries, though charities and trusts may also be designated.

Traditional and Roth IRAs have different tax characteristics, but both may pass to beneficiaries through this designation process. Traditional IRAs generally require withdrawals to be taxed as income when distributions occur. Roth IRAs typically allow tax-free withdrawals if certain conditions are met.

Recent federal law changes have also affected inherited IRAs. In many cases, beneficiaries must withdraw the entire balance within 10 years of the original owner’s death. However, certain beneficiaries, such as spouses, minor children, individuals with disabilities or beneficiaries close in age to the original account holder, may have additional distribution options.

Why Name A Trust As The Beneficiary Of An IRA?

Naming a trust as the beneficiary of an IRA may provide additional structure and protection compared to leaving the account directly to an individual. Some situations where naming a trust may be beneficial include:

• Providing support for minors or vulnerable beneficiaries: A trust can manage the IRA assets until a beneficiary can handle financial decisions independently.
• Protecting government benefits: For individuals with special needs, receiving assets directly could affect eligibility for certain programs. A trust can help address this concern.
• Managing blended family planning: A trust can provide income for a surviving spouse while preserving remaining assets for children from a prior marriage.
• Limiting immediate access to funds: Beneficiaries who inherit an IRA directly may withdraw the entire balance quickly. A trust can control the timing of distributions.
• Providing creditor protection: Inherited IRA funds held within a properly structured trust may receive additional protection from creditors.

Trust planning involving retirement accounts requires careful drafting and coordination with beneficiary designations. By incorporating an IRA into a broader trust strategy, individuals may protect retirement assets while supporting long-term family goals.

Talk About Establishing Trusts In A Free Consultation

Whatever your reasons for wanting to explore the possibility of using a trust as part of your estate plan, we’re here to help and have the experience needed to make it happen. Contact us online or by telephone at 678-608-1746 to schedule a free initial consultation.

All Major Credit Cards Accepted