Planning for a child or family member with disabilities requires special care. A special needs trust (SNT) is designed to protect their financial future while preserving eligibility for essential government benefits like Medicaid and Supplemental Security Income (SSI). For Cincinnati families, a special needs trust provides peace of mind that your loved one will be cared for long after you are gone.
What Is a Special Needs Trust?
A special needs trust is a legal arrangement that holds and manages assets for the benefit of a person with disabilities. The trustee uses these funds to cover expenses not provided by government benefits, such as:
- Housing and utilities
- Transportation
- Education and training
- Medical expenses not covered by insurance
- Personal needs and recreation
By keeping the assets in the trust rather than directly in the beneficiary’s name, eligibility for programs like SSI and Medicaid is protected.
Benefits of a Special Needs Trust
Special needs trusts are invaluable for families who want to provide long-term care and stability:
- Preserve Benefits – Protect eligibility for Medicaid, SSI, and other aid.
- Financial Security – Provide resources beyond government assistance.
- Peace of Mind – Ensure ongoing care even after parents or guardians pass away.
- Flexibility – Cover a wide range of supplemental needs.
- Professional Oversight – Trustees manage funds responsibly and according to the law.
Types of Special Needs Trusts
There are several forms of special needs trusts, each with unique rules:
- First-Party SNT – Funded with the beneficiary’s own assets (e.g., an inheritance or settlement).
- Third-Party SNT – Funded by parents, grandparents, or others for the beneficiary’s benefit.
- Pooled Trust – Managed by nonprofit organizations, combining resources for efficiency.
Who Should Consider a Special Needs Trust?
An SNT may be right for your family if you want to:
- Support a child or adult with disabilities without jeopardizing benefits.
- Leave an inheritance in a safe, protected way.
- Provide resources for specialized care and lifestyle needs.
- Ensure long-term stability and security for your loved one.
Why Work With a Cincinnati Trust Attorney?
Special needs trusts are subject to detailed federal and state regulations. Setting one up incorrectly could cause loss of vital benefits. A Cincinnati trust attorney can:
- Draft a trust that complies with Ohio and federal law.
- Help you choose the right type of SNT.
- Advise on funding strategies, from savings to insurance.
- Coordinate the SNT with your overall estate plan.
Take the Next Step
A special needs trust ensures your loved one has the resources they need while protecting the benefits they depend on. Planning now means peace of mind for the future.
Protect your family. Call to setup an appointment with Krugler Law. (513) 916-1600.
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