In Georgia, a Special Needs Trust (SNT) allows the parent of a disabled child to funnel support payments directly into the trust rather than to the custodial parent. What it does not typically do, however, is reduce your overall financial obligation.
Family courts rarely consider assets within an SNT to determine your initial payments, as it is designed to protect your child’s financial eligibility for governmental benefits. Stick with us to learn more about how these trusts affect child support and why they are important.
The purpose of an SNT is to protect your child’s eligibility for essential government benefits. This legal arrangement holds assets, including court-ordered child support payments, in a trust rather than in the child’s name. This structure is valuable because making direct payments would likely affect your child’s income-based eligibility for certain public assistance programs, like SSI or Medicaid.
An SNT may be structured as an irrevocable, first-party d(4)(A) trust, particularly when the individual has their own assets from a lawsuit settlement or inheritance, for example. A family court judge can order a non-custodial parent to make child support payments directly into the trust. This ruling ensures the funds are used for the child’s specific needs without jeopardizing access to public benefits.
Yes. A SNT’s funds must be used for extras not covered by Medicaid, such as therapies, equipment, education, and recreational activities. Unfortunately, using this money for food or shelter can reduce some benefits. While not strictly illegal, rent, mortgage, utilities, or groceries out of the trust can trigger a reduction in SSI based on In-Kind Support and Maintenance rules.
Also, funds cannot be used for items already covered by Medicaid, such as basic medical services, nor for gifts to others or any other unauthorized purposes. This rule ensures that all disbursements solely benefit the disabled individual. If the SNT is funded by the beneficiary’s own assets, it must also include a provision to reimburse Medicaid for benefits paid upon the beneficiary’s death.
Georgia’s family courts calculate child support for a disabled child using the standard income-shares model based on both parents’ gross incomes. However, it often includes special deviations for extraordinary medical, therapeutic, or educational expenses. This is particularly the case when the child has a mental or physical incapacity that requires financial support beyond age 18, ensuring the child’s long term quality of life.
Courts typically do not consider assets or income within a properly established SNT when determining the amount of child support to award. While the assets in the trust are shielded, if the trust is used to generate income, that income might be considered when determining your child support obligation.
Now that you have a fundamental understanding of how special needs trusts (SNT) impact child support, your next step is to reach out to the trusted family law attorneys at the Atlanta Family Law Group with your questions. Talk with us about the proper way to establish and structure your child’s SNT. Improper structure can disqualify your child from public benefits while impacting your support obligation, so act now to secure your family’s future.
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