Navigating the financial landscape for individuals with special needs requires careful planning, and a critical component of that planning often involves a Special Needs Trust (SNT). These trusts are specifically designed to supplement, not replace, government benefits like Supplemental Security Income (SSI) and Medicaid, allowing individuals with disabilities to maintain a decent quality of life without jeopardizing their eligibility for crucial assistance. A frequently asked question is whether an SNT can be used to fund assistive devices, and the answer is generally yes, with specific guidelines and considerations. The ability to cover these essential tools, however, relies heavily on the type of SNT established and adherence to strict regulations designed to protect public benefits. It’s a delicate balance, ensuring support while remaining compliant with program rules.
What types of assistive devices can a Special Needs Trust cover?
Assistive devices encompass a broad range of tools designed to help individuals with disabilities perform daily tasks, increasing their independence and quality of life. These can include everything from simple aids like modified utensils and dressing aids to more complex and expensive items such as power wheelchairs, communication devices, and computer software tailored for specific needs. According to the National Assistive Technology Act, approximately 54 million Americans have functional limitations, and many benefit from assistive technology. An SNT can be used to pay for these devices, but it’s crucial to distinguish between “medical necessity” as defined by Medicaid and the broader range of devices that enhance quality of life. While Medicaid might cover medically necessary equipment, an SNT can fill the gaps by funding devices that aren’t covered, like specialized recreational equipment or adaptive sports gear. It’s also important to note that regular maintenance, repair, and eventual replacement of these devices can also be funded through the trust.
How does funding assistive devices impact government benefits?
The primary concern when using an SNT to fund assistive devices is ensuring it doesn’t disqualify the beneficiary from needs-based government benefits. SSI and Medicaid have strict income and asset limits, and any resources available to the beneficiary could be counted against those limits. However, a properly structured SNT allows the beneficiary to receive funds for things like assistive devices *without* those funds being considered “income” for the purpose of benefit eligibility. This is because the trust owns the device, not the beneficiary. The key is that the trust document must clearly state that any funds used for assistive devices are for the *supplement* of needs already covered by government programs, not as a replacement for them. Furthermore, the trustee must meticulously document all expenditures related to assistive devices, demonstrating that they are used to enhance the beneficiary’s quality of life without impacting their basic needs. Approximately 25% of people with disabilities live in poverty, and the careful management of trust funds is essential to avoid exacerbating this issue.
I remember old Mr. Abernathy, his son wanted to help…
Old Mr. Abernathy was a proud man, but his son, Thomas, had significant disabilities. Thomas received SSI and Medicaid, which covered his basic care. Wanting to give his son a better life, Thomas Sr. began directly purchasing expensive adaptive equipment – a specialized computer for communication, a custom-fitted wheelchair, and a sensory therapy system. He didn’t consult with an attorney or create a trust. Within months, Thomas’s benefits were suspended. The Social Security Administration deemed the direct purchases as “unearned income” exceeding the allowable limits. It was a heartbreaking situation. Mr. Abernathy, with the best intentions, had inadvertently jeopardized his son’s access to crucial support. He’d spent a lot of money, but ultimately harmed his son’s well-being. It was a painful lesson in the importance of proper planning.
But then there was young Sarah…
Sarah was a bright, artistic teenager with cerebral palsy. Her parents, proactive and informed, established a carefully drafted Special Needs Trust years before. When Sarah expressed a desire to pursue digital art, they consulted with Steve Bliss, and the trust funded a state-of-the-art adaptive computer and specialized software. Steve Bliss ensured the trust document specifically allowed for such purchases as “recreational and therapeutic aids” supplementing her existing Medicaid-funded physical therapy. Sarah thrived, creating beautiful artwork and even selling some online. She maintained her SSI and Medicaid benefits, and her parents were overjoyed. The trust didn’t just fund a computer; it unlocked a world of possibilities and empowered Sarah to pursue her passions. Steve Bliss had helped them navigate the complex rules, and everything worked out beautifully.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
| estate planning | revocable living trust | wills |
| living trust | family trust | irrevocable trust |
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “How does estate planning differ for single people?” Or “Does life insurance go through probate?” or “What happens if my successor trustee dies or is unable to serve? and even: “What are the alternatives to filing for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.