A special needs trust (SNT) is the cornerstone of your loved one’s financial security. This resource allows them to receive funds without jeopardizing their eligibility for crucial means-tested benefits.
However, both your family’s circumstances and the rules governing government aid are constantly changing. If your loved one’s SNT is outdated, they are at risk of a sudden loss of critical benefits. With that in mind, here are three major events that require an SNT update.
Life events that trigger an immediate review
SNTs are dynamic plans that must adapt to the beneficiary’s life. These major life events are some of the biggest reasons that prompt a review:
- Medical condition: Your loved one may have a change in their condition that requires new therapies.
- Relocation: Your relocation can affect eligibility for benefits and compliance with state laws.
- Fiduciary replacement: Your named trustee passes away or is no longer a good fit for the position.
- Financial adjustment: Your employment status can impact funding strategies.
When these occur, you must update your SNT to avoid complications.
Changes in federal and Ohio benefit laws
Federal and state laws are constantly changing, and your SNT must remain compliant to shield the trust assets. Usually, regulations on Medicaid and Supplemental Security Income (SSI) shift. These changes can render your loved one’s older trust non-compliant, causing the government to count the trust assets as available resources.
Reviewing the SNT periodically
Your SNT is your loved one’s lifeline. To protect their eligibility, security and quality of life, review their trust documents periodically. The complex nature of federal and Ohio benefits makes estate planning challenging. Seeking legal guidance can help you ensure that your documents are legally current and your loved one remains protected.
