A special needs trust—also known as a supplemental needs trust—is an irrevocable trust designed to provide supplemental income for a designated beneficiary who is physically disabled, mentally disabled, has chronic illness, or has other special needs and is receiving or may be eligible to receive government benefits—such as Social Security, Supplemental Security Income (SSI), Medicare, or Medicaid.

A special needs trust is often created by parents of a disabled child, with the trust prohibiting distributions from being used for the child’s food, clothing, or shelter to ensure the child (or adult) remains eligible for related government benefits. A special needs trust must be created before the beneficiary reaches the age of 65.

In Ohio, a special needs trust, also known as a supplemental needs trust, is a legal arrangement that allows individuals with disabilities to have financial resources set aside for their benefit without jeopardizing their eligibility for government assistance programs like Social Security, Supplemental Security Income (SSI), Medicare, or Medicaid. These trusts are designed to provide for the extra and supplemental needs of the beneficiary, beyond what the government programs cover, and typically cannot be used for basic support items such as food, clothing, or shelter. Ohio law requires that a special needs trust be established before the beneficiary turns 65 years old. The trust must be irrevocable, meaning it cannot be altered or canceled once it's created, to ensure that the assets in the trust do not count as resources for the purpose of qualifying for government benefits. Parents, grandparents, legal guardians, or the court can establish a special needs trust for the benefit of a disabled individual. It is important to structure the trust correctly and to understand the specific rules that apply to ensure that the beneficiary's government benefits are not affected. Consulting with an attorney who specializes in special needs planning is advisable to navigate the complexities of establishing and managing a special needs trust in Ohio.