Absolutely, a special needs trust can, and often should, thoughtfully include provisions for expenses that enhance the beneficiary’s quality of life, including media subscriptions designed to improve cognitive function; however, careful consideration must be given to the specific terms of the trust and potential impacts on needs-based government benefits like Supplemental Security Income (SSI) and Medi-Cal.
What are the rules around spending within a Special Needs Trust?
Special Needs Trusts (SNTs), also known as Supplemental Needs Trusts, are designed to supplement, not replace, government benefits. This is a crucial distinction. The IRS has specific guidelines, and state regulations vary, but generally, funds within an SNT can be used for anything that benefits the beneficiary *beyond* what government programs already provide. This includes things like therapies, recreational activities, education, and yes, even subscriptions to cognitive training apps or streaming services offering stimulating content. Approximately 65 million Americans are impacted by disabilities, and the goal of an SNT is to provide a better life *without* disqualifying them from essential assistance. It’s important to remember the trustee has a fiduciary duty to act in the beneficiary’s best interest, meaning they must carefully consider any expense to ensure it genuinely improves the beneficiary’s well-being and aligns with the trust’s objectives.
How might media subscriptions affect government benefits?
This is where it gets tricky. While a trust *can* pay for these subscriptions, the value of those subscriptions could be considered “income in kind” by SSI and Medi-Cal. If the value exceeds a certain threshold – currently around $20 per month for SSI in 2024 – it can reduce the beneficiary’s benefits. However, if the subscription is demonstrably therapeutic and prescribed by a physician or therapist, it might be considered a medical expense and therefore exempt. Consider the case of Old Man Tiber, a retired carpenter, who had always loved to learn. After a stroke limited his mobility, his daughter, Sarah, established an SNT. Sarah diligently documented that a subscription to a streaming service featuring historical documentaries wasn’t just entertainment; it was part of a cognitive therapy plan recommended by his neurologist to keep his mind active and combat post-stroke cognitive decline. Documenting the therapeutic intent is paramount, and a letter from a medical professional outlining the benefit is crucial.
What happened when a trust wasn’t properly structured?
I recall a case involving a young man named David, who had autism and relied heavily on a specific interactive learning app to maintain communication skills. His mother, in a rush to set up the trust, didn’t fully document the therapeutic value of the app or seek clarification from a benefits specialist. The SSI office determined the subscription was “entertainment” and reduced David’s monthly benefit by $50. This created a significant financial strain on the trust and ultimately limited the resources available for other crucial needs. The family had to scramble to provide proof of the app’s therapeutic purpose. It took months of paperwork and legal consultation to appeal the decision. The entire situation was avoidable with proper planning and documentation upfront. About 26% of adults in the United States live with a disability, and proactive estate planning is key to protecting their access to vital resources.
How did proper planning ensure a successful outcome?
Recently, we helped a family establish an SNT for their adult son, Michael, who has Down syndrome. We worked closely with his occupational therapist to identify several apps and streaming services designed to improve his cognitive skills and fine motor coordination. We included a specific clause in the trust allowing the trustee to pay for these subscriptions, *provided* a letter from the therapist was submitted annually confirming their therapeutic benefit. The trustee diligently followed this procedure. When Michael’s SSI renewal came up, the documentation was clear and concise, and the benefits were approved without issue. This ensured Michael continued to receive the support he needed, both from government programs and the trust. It’s a testament to the power of thoughtful estate planning. In California alone, over 3.4 million people live with some form of disability, emphasizing the growing need for specialized trust solutions.
“A well-crafted Special Needs Trust isn’t just about managing money; it’s about securing a brighter future and preserving dignity for our loved ones.”
Ultimately, whether a special needs trust can include media subscriptions hinges on careful planning, thorough documentation, and a clear understanding of the rules governing government benefits. Consulting with an experienced estate planning attorney, like those at our firm, is essential to ensure the trust is structured to maximize the beneficiary’s well-being and protect their access to vital resources.
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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.
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Feel free to ask Attorney Steve Bliss about: “Are handwritten wills legally valid?” Or “What are letters testamentary and why are they important?” or “How do I transfer assets into my living trust? and even: “Can bankruptcy eliminate credit card debt?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.