Whether you want to set up a special needs trust on your own behalf or for a loved one who has a disability, it is very important to understand the requirements. A special needs trust could offer various perks. Aside from peace of mind, this estate planning strategy could allow you or your disabled loved one to remain eligible for crucial government programs, such as Medicaid and SSI.
However, your trust must satisfy a number of requirements in order to qualify as a special needs trust.
Special needs trusts and age requirements
According to data published by the Ohio Revised Code, you must establish a special needs trust before the disabled beneficiary reaches the age of 65. However, it is important to note that you cannot add to the trust after the beneficiary turns 65, aside from the income the trust generates.
If a beneficiary remains disabled after 65, the special needs trust stays in effect, so long as you established it before the beneficiary reached the age of 65.
Other special needs trust requirements
Special needs trusts can include a disabled beneficiary’s assets as well as the assets of others. In order to qualify, the beneficiary must have a recognized disability as outlined in the Administrative Code. Moreover, you must establish the trust for the disabled beneficiary’s benefit.
Various people can create special needs trusts, such as the disabled person, the court or a disabled individual’s parent, grandparent or legal guardian. If you want to set up a special needs trust, make sure you approach the process carefully.