The question of whether a Special Needs Trust (SNT) can fund subscription safety monitoring devices is a common one for families caring for loved ones with disabilities. The short answer is generally yes, but it requires careful consideration and adherence to specific rules surrounding SNTs, particularly to avoid jeopardizing vital government benefits like Supplemental Security Income (SSI) and Medicaid. SNTs are designed to supplement, not replace, government assistance, and purchases must align with maintaining that eligibility. Approximately 1 in 5 adults in the US lives with some form of disability, meaning this is a growing concern for a significant portion of the population; therefore, thoughtful planning is paramount. These devices, such as medical alert systems, GPS trackers, or even home security systems enhanced for specific needs, can dramatically improve a beneficiary’s safety and well-being, but funding them from an SNT requires navigating a complex landscape of regulations.
What are the rules around using SNT funds for quality of life expenses?
Special Needs Trusts fall into two primary categories: first-party or self-settled trusts (funded with the beneficiary’s own assets) and third-party trusts (funded by someone other than the beneficiary). The rules governing permissible distributions differ significantly. Third-party SNTs generally offer more flexibility, allowing for a broader range of “quality of life” expenses that wouldn’t be permissible with a first-party trust. These can include things like recreation, education, and yes, safety monitoring. However, even with third-party trusts, the purchases must be supplemental – meaning they can’t duplicate benefits already provided by government programs. A monthly subscription to a medical alert system – costing on average between $25 and $60 – could be deemed permissible as it provides an additional layer of security beyond what Medicaid typically covers. It’s important to remember that about 68% of individuals with severe disabilities rely heavily on government benefits, so preserving eligibility is critical.
Can paying for safety devices affect government benefit eligibility?
The primary concern is that providing a safety monitoring device could be viewed as providing a service that Medicaid or SSI would otherwise cover, potentially reducing or eliminating benefits. For example, if Medicaid already provides a Personal Care Attendant (PCA) who monitors the beneficiary, adding a redundant system might trigger a benefit reduction. However, if the PCA doesn’t offer continuous monitoring, or if the beneficiary has periods of time where they are unsupervised, a safety device can fill a crucial gap without jeopardizing eligibility. It’s not always a straightforward assessment, and often requires a detailed review of the beneficiary’s care plan and the specific services they receive. A recent study indicated that approximately 15% of SNT applications are initially denied due to improper trust structure or distribution concerns.
I knew a family who lost benefits because of a seemingly harmless purchase…
Old Man Tiber, a carpenter with weathered hands and a twinkle in his eye, always prided himself on his independence. After a stroke left him partially paralyzed, his daughter, Sarah, established a third-party SNT to help supplement his care. She ordered a sophisticated fall detection system, believing it would give them both peace of mind. Unfortunately, the system was quite advanced, automatically contacting emergency services not just for falls, but even for significant changes in heart rate or movement. Medicaid determined that the system essentially duplicated the monitoring services provided by his home healthcare nurse, and his benefits were reduced by 30%. Sarah was heartbroken, realizing she’d acted with good intentions but hadn’t fully understood the implications. It was a hard lesson learned, demonstrating the need for expert guidance when utilizing SNT funds.
How did careful planning save another family from a similar situation?
The Ramirez family faced a similar challenge with their son, Leo, who has autism and a tendency to wander. They wanted to fund a GPS tracking device and a smart home security system to ensure his safety. This time, they consulted with Steve Bliss, an Estate Planning Attorney specializing in SNTs. Steve carefully reviewed Leo’s existing care plan and worked with Medicaid to demonstrate that the devices didn’t duplicate existing services. He emphasized that the tracking device was specifically for preventing Leo from wandering off, a behavior that wasn’t addressed by his current support team, and the smart home system had features tailored to Leo’s unique needs. By proactively addressing potential concerns and obtaining prior approval, the Ramirez family was able to fund the safety measures without jeopardizing Leo’s benefits. It proved that a little foresight and expert advice can make all the difference in safeguarding both a loved one’s well-being and their financial security.
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About Steve Bliss Esq. at The Law Firm of Steven F. Bliss Esq.:
The Law Firm of Steven F. Bliss Esq. is Temecula Probate Law. The Law Firm Of Steven F. Bliss Esq. is a Temecula Estate Planning Attorney. Steve Bliss is an experienced probate attorney. Steve Bliss is an Estate Planning Lawyer. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Steve Bliss Law. Our probate attorney will probate the estate. Attorney probate at Steve Bliss Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Steve Bliss Law will petition to open probate for you. Don’t go through a costly probate. Call Steve Bliss Law Today for estate planning, trusts and probate.
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● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
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Feel free to ask Attorney Steve Bliss about: “What’s the best way to leave money to minor children?”
Or “How do I find out if probate has been filed for someone who passed away?”
or “Can a living trust help provide for a loved one with special needs?
or even: “What are the different types of bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.