SNT Distributions Are Countable in Calculating Child Support Payments

An Ohio appeals court rules that distributions from a special needs trust are countable income in calculating a beneficiary's child support obligation. Myers v. DeVore (Ohio Ct. App., 6th, No. WD-06-031, Oct. 6, 2006).

James L. Myers and Tina M. DeVore were divorced in 1995 and shared custody of their son. Two years later, a car crash left Ms. DeVore permanently disabled. Ms. DeVore eventually settled with the at-fault driver and the proceeds were placed in a special needs trust (SNT) to preserve her eligibility for Medicaid. Mr. Myers, who had assumed custody of the child, then reasserted an earlier child support claim.

Ms. DeVore argued that money withdrawn from the SNT should not be included in her gross income in calculating the child support amount. Mr. Myers countered that distributions from the trust satisfied the broad definition of gross income. The trial court agreed with Mr. Myers, concluding that SNT distributions could be considered in child support calculations. Ms. DeVore appealed, arguing that because an SNT is a federally sanctioned device to shelter funds from being included as countable assets for purposes of Medicaid eligibility, the state should afford the same protection to trust distributions.

The Court of Appeals of Ohio, Sixth District, affirms. "[W]e find no authority that a special needs trust supercedes or in any other way influences areas of the law outside Medicaid," the court writes. "Absent an express statutory exemption, we must conclude that income from a special needs trust is 'trust income' and, as such, is expressly included in 'gross income' for purposes of child support computations . . ."

To download the full text of this decision in PDF format, go to: https://www.co.lucas.oh.us/Appeals/DecisionsPDF/2910.pdf.
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