What Really Happens If You Die Without a Will in Ohio?
Many people assume that if they pass away without a will, everything will just “work itself out.” Unfortunately, that’s not how Ohio law works. Dying without a will—also known as…
Creating an estate plan is a vital step to ensure your loved ones are cared for after you’re gone. However, if one or more of your beneficiaries relies on need-based government benefits, such as Medicaid or Supplemental Security Income (SSI), it’s crucial to plan carefully. Receiving an inheritance can unintentionally disqualify them from these programs, potentially leaving them worse off financially. Even if none of your loved ones currently rely on government benefits, circumstances can change—a beneficiary might need to rely on these programs by the time they receive their inheritance. That’s why it’s important to plan for contingencies and create an estate plan that anticipates these possibilities, ensuring your loved ones are protected no matter what.
Need-based government programs have strict income and asset limits to determine eligibility. For example:
Without proper planning, an inheritance could lead to a loss of critical benefits, forcing the beneficiary to spend down the inheritance to requalify, often at great financial and emotional cost.
A Special/Supplemental Needs Trust (SNT) is a crucial tool for protecting the eligibility of a beneficiary with a disability who relies on need-based government benefits, such as Medicaid or Supplemental Security Income (SSI), while still allowing them to receive an inheritance. By placing assets in an SNT, the trust can provide for supplemental needs like education, transportation, or recreational activities without impacting the beneficiary’s access to essential benefits that cover basic living expenses, such as food and shelter. The trust ensures that inherited funds are managed strategically and exclusively for the beneficiary’s benefit, preserving their quality of life without jeopardizing critical support programs. Establishing an SNT allows you to plan for the future with peace of mind, knowing your loved one’s financial and personal needs will be met.
Even if none of your current beneficiaries rely on need-based government benefits, circumstances can change unexpectedly. A medical crisis, disability, or financial hardship—such as a debilitating injury, chronic illness, or mental health condition—could place a beneficiary in a position where they become eligible for programs like Medicaid or Supplemental Security Income (SSI).
To plan for these possibilities, your estate plan can include a contingency Special/Supplemental Needs Trust (SNT), which is triggered upon your passing if a beneficiary is receiving or may need to apply for need-based assistance. This proactive approach ensures their inheritance is managed to supplement their quality of life without jeopardizing their access to vital benefits. By having a well-designed estate plan and clearly communicating your plans to family members, you can create a flexible, legally sound estate plan that adapts to unforeseen challenges and protects your loved ones.
Estate planning for beneficiaries who rely on need-based benefits requires thoughtful preparation and attention to detail. Ohio Heritage Law specializes in creating customized estate plans that address these unique challenges, ensuring your loved ones are protected without jeopardizing their access to critical support.
Contact us today at (330) 571-4151 or email info@ohioheritagelaw.com to schedule a consultation and take the first step toward securing your family’s future. Together, we’ll create a plan that gives you peace of mind and ensures your beneficiaries are cared for in every circumstance.
The information provided on this website is for general informational purposes only and does not constitute legal advice. Visiting this website or contacting Ohio Heritage Law LLC through this website does not create an attorney-client relationship. You should not act or rely on any information provided without seeking professional legal advice tailored to your specific situation. Ohio Heritage Law LLC does not accept representation of clients without a formal client engagement agreement. Please do not send any confidential information to Ohio Heritage Law LLC until an attorney-client relationship has been established.