Planning for a child with special needs takes more than leaving them money or assets. In Ohio, special needs estate planning helps you keep your child eligible for SSI and Medicaid while also setting aside resources for their long-term care.
What is special needs estate planning
Special needs estate planning creates a safety net for people with disabilities. It helps them keep government benefits while still having extra funds for daily needs. In Ohio, families often use special needs trusts (SNTs) and STABLE accounts. These tools improve quality of life without risking benefits.
Using a third-party special needs trust
Families most often create a third-party SNT. Parents, grandparents or other relatives fund this trust, not the beneficiary. The Ohio Trust Code allows you to write the trust to supplement government benefits rather than replace them. Key points to consider include:
- Establishment: You can create the trust during your life or through your will.
- Funding: You may fund the trust with cash, investments or real estate.
- Management: A trustee manages distributions and ensures funds serve the beneficiary.
- Flexibility: When the beneficiary dies, remaining funds can pass to other family members instead of Medicaid.
Because the beneficiary does not own these assets, they do not count toward SSI and Medicaid limits. The trust can then cover goods and services that make daily life better.
STABLE accounts in Ohio
Ohio offers STABLE accounts which are the state’s version of ABLE accounts. These are special savings accounts with tax benefits that can pay for disability-related expenses like housing, school, healthcare and job support. Important features include:
- Eligibility: Disability must have begun before age 26.
- Contributions: Limited to about $19,000 per year in 2025 with additional contributions from employment income allowed.
- Benefit protection: The first $100,000 does not affect SSI eligibility and Medicaid benefits remain intact.
- Payback rule: Remaining funds may be used to reimburse Medicaid after death.
Families often use an SNT for larger inheritances and a STABLE account for daily expenses.
Planning beyond finances
Special needs planning is not just about money. You may also need to set up guardianship, make plans for daily care or write a letter of intent that explains your child’s routines and preferences. Choosing a trustee or guardian who truly understands your child’s needs is one of the most important steps.
Special needs estate planning is complex and mistakes can threaten benefit eligibility. An experienced attorney can help you create the right trust, coordinate STABLE accounts and record your long-term wishes.