Special Needs Trusts in Ohio: Protecting a Loved One Without Risking Benefits
July 2, 2025
Special Needs Trusts in Ohio: Protecting a Loved One Without Risking Benefits
Planning for the future of a loved one with a disability can be a sensitive and complex task. One common concern for families in Cincinnati is how to provide financial support without jeopardizing eligibility for government benefits like Medicaid or Supplemental Security Income (SSI). Fortunately, Ohio law allows for the creation of Special Needs Trusts (SNTs)—an effective legal tool that can help protect a loved one’s financial future while preserving access to essential public benefits.
What Is a Special Needs Trust?
A Special Needs Trust is a specific type of trust designed to hold assets for a person with a disability. These trusts are structured so that the funds are not counted as available resources when determining eligibility for means-tested programs like Medicaid and SSI. This allows the beneficiary to receive supplemental support—such as personal care attendants, therapy, education, and recreational activities—without risking their government assistance.
Types of Special Needs Trusts in Ohio
Ohio recognizes several forms of SNTs, each with specific rules and benefits:
- First-Party Special Needs Trust: Funded with assets that belong to the individual with special needs (often from an inheritance or personal injury settlement). It must be created before the beneficiary turns 65 and includes a payback provision to Medicaid upon their death.
- Third-Party Special Needs Trust: Funded with assets from someone other than the beneficiary, typically parents or grandparents. It does not require a Medicaid payback and is commonly used in estate planning.
- Pooled Trust: Managed by nonprofit organizations, these trusts combine the resources of multiple beneficiaries for investment purposes but still provide individualized accounts. They are often used when a family lacks a trustee or needs professional oversight.
Benefits of Creating a Special Needs Trust
- Maintains Eligibility for Benefits: Properly structured SNTs ensure that funds are not considered countable assets under Medicaid or SSI guidelines.
- Customizable Support: Trustees can use the funds to enhance the beneficiary’s quality of life, covering expenses not met by public benefits.
- Peace of Mind: Families can rest assured that their loved one will be cared for without unintended financial consequences.
Legal Guidance Matters
Creating a Special Needs Trust requires careful legal drafting to ensure compliance with both federal and Ohio-specific rules. At Singler Law LLC, we provide the Cincinnati community with legal guidance tailored to these complex planning needs. Whether you're setting up a trust for a child, sibling, or aging parent with disabilities, we are here to help you build a secure and thoughtful plan.
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