Irrevocable Trust Attorney in Atlanta, Georgia

Types of Irrevocable Trusts in Georgia

The term irrevocable trust is not one thing. It is a category. Several different trust structures share the characteristic that they cannot be modified or revoked once signed. Each one solves a specific problem.

Medicaid Asset Protection Trust

Designed to protect your home and savings from Medicaid spend-down requirements if you need long-term care. Assets transferred into this trust become non-countable for Medicaid eligibility purposes after Georgia’s five-year lookback period. This is one of the most time-sensitive planning tools in elder law — the five-year clock starts on the date of transfer, not the date you need care. The earlier you act, the more protection you can build.

Special Needs Trust

Holds assets for a beneficiary who receives needs-based government benefits such as Medicaid or Supplemental Security Income. An outright inheritance can disqualify a disabled beneficiary from these programs. A Special Needs Trust preserves their benefits while allowing the funds to be used for supplemental expenses — education, therapy, equipment, recreation — that the government programs do not cover.

Irrevocable Life Insurance Trust (ILIT)

Removes a life insurance policy from your taxable estate. When you own a life insurance policy outright, the death benefit is included in your estate for estate tax purposes. Transferring the policy to an ILIT removes it from your taxable estate while allowing the death benefit to flow to your beneficiaries through the trust.

Charitable Trusts

Allow you to give to a charity while retaining income during your lifetime or providing an income stream to your heirs. Charitable Remainder Trusts (CRTs) and Charitable Lead Trusts (CLTs) are the two primary forms. Both involve a split interest between a charity and individual beneficiaries, and both can produce estate and income tax benefits.

What You Give Up

You give up control. Once assets are in an irrevocable trust, you cannot take them back. You cannot change the beneficiaries. You cannot change the terms. This is non-negotiable — the protection comes from the loss of control, not in spite of it.

You give up flexibility. If your circumstances change — a divorce, a death in the family, a change in tax law — an irrevocable trust generally cannot be modified to respond. Some states allow judicial modification in limited circumstances. Georgia courts have narrow authority here. Plan with that rigidity in mind.

There may be gift tax consequences. Transferring assets into an irrevocable trust is a taxable gift. For most families, the annual and lifetime exclusions cover this. For larger transfers, a gift tax return may be required. Melissa Breyer coordinates with your CPA on any transfer that triggers a reporting requirement.

Who Needs an Irrevocable Trust

You are over 60 and concerned about nursing home costs. The five-year Medicaid lookback means planning must happen before you need care. A Medicaid Asset Protection Trust started now gives your assets the time they need to become protected. Waiting until a health event occurs is too late.

You have a child or family member with a disability. If you plan to leave assets to a beneficiary on government benefits, a Special Needs Trust is not optional — it is the only structure that protects both the assets and the benefits.

Your net worth is above $13 million. Federal estate tax applies to taxable estates above the current exemption. Irrevocable trusts are the primary tool for removing assets from a taxable estate while keeping them in the family.

You are a business owner or professional with litigation exposure. If your personal assets are at risk from professional liability or business disputes, an asset protection trust built before a claim arises can provide meaningful protection.