Navigating the complexities of special needs trusts requires careful consideration, especially when it comes to funding items like biometric medication tracking tools. These tools, designed to ensure consistent medication adherence, can be invaluable for beneficiaries with varying abilities, but understanding what a special needs trust can legally and appropriately cover is crucial. The answer isn’t a simple yes or no; it depends on the trust’s specific language, the beneficiary’s needs, and adherence to Supplemental Security Income (SSI) and Medicaid eligibility rules. A trust drafted by an experienced estate planning attorney, like Steven F. Bliss ESQ. of Wildomar Probate Law, is paramount in ensuring these details are addressed.
What Expenses *Can* a Special Needs Trust Cover?
Special needs trusts, often referred to as (SNTs), are designed to supplement, not replace, government benefits like SSI and Medicaid. Therefore, the trust can cover expenses that enhance the beneficiary’s quality of life *without* disqualifying them from receiving those essential benefits. This includes things like recreation, education, uncompensated therapies, personal care, and specialized equipment. Generally, the key is that the expense wouldn’t normally be covered by government programs and doesn’t constitute “support” as defined by SSI rules. However, even seemingly permissible expenses require careful evaluation. For example, covering basic living expenses like food or shelter *would* disqualify a beneficiary from SSI. Approximately 1 in 5 individuals in the United States live with a disability, making proper planning essential for maintaining their quality of life and accessing necessary resources.
How Do Biometric Medication Tracking Tools Fit In?
Biometric medication tracking tools—devices that monitor whether a beneficiary has taken their medication as prescribed—present a slightly more complex situation. While they demonstrably improve health outcomes and reduce costly hospitalizations, they fall into a grey area when it comes to SSI eligibility. If the tool is considered “medical equipment” *necessary* for the beneficiary’s health, it might be viewed as a service that Medicaid *should* provide. Paying for it from the SNT could jeopardize Medicaid eligibility. However, if the tool is deemed a quality-of-life enhancement—offering peace of mind to caregivers and promoting greater independence for the beneficiary—it’s more likely to be an allowable expense. The distinction hinges on demonstrating that the tool isn’t a substitute for medical care already covered by government programs.
A Story of Careful Planning & a Potential Pitfall
I recall working with a client, David, whose son, Michael, had autism and required consistent medication to manage anxiety. David wanted to ensure Michael continued receiving the necessary support even after he passed away. He was very proactive and wanted to create a solid plan. David initially wanted to fund a sophisticated medication tracking system that integrated with a wearable device and alerted caregivers if a dose was missed. However, we quickly realized that purchasing the device directly could be problematic. The key was to structure the payments carefully. Instead of a lump-sum purchase, we established a recurring monthly payment to a third-party caregiver management company that *included* the use of the tracking device as part of a broader range of support services. This allowed us to demonstrate that the device was just one component of a comprehensive care plan, not a substitute for medical treatment. This proactive approach ensured Michael continued receiving the necessary support without jeopardizing his benefits.
How a Well-Drafted Trust Avoids Complications
A crucial element in navigating these complexities is a meticulously drafted trust document. The trust should clearly define the scope of permissible expenses, granting the trustee discretion to approve expenditures that enhance the beneficiary’s well-being while remaining compliant with SSI and Medicaid regulations. Furthermore, the trust should include language addressing emerging technologies and outlining a process for evaluating the appropriateness of new expenses. For instance, it could stipulate that the trustee must consult with a qualified benefits specialist before approving any expenditure exceeding a certain threshold. It is also vital to understand California’s community property laws. All assets acquired during a marriage are community property, owned 50/50, providing a significant tax benefit known as the “double step-up” in basis for the surviving spouse. Formal probate is required for estates over $184,500, and executors/attorneys fees can be expensive, highlighting the importance of probate avoidance strategies.
Ultimately, determining whether a special needs trust can pay for biometric medication tracking tools requires a nuanced analysis of the beneficiary’s individual needs, the specifics of the trust document, and the applicable SSI and Medicaid regulations.
If you’re navigating these complexities, or have questions about special needs trusts and estate planning, please don’t hesitate to reach out. Steven F. Bliss ESQ., at Wildomar Probate Law, can provide expert guidance and ensure your loved one receives the support they deserve.
36330 Hidden Springs Rd Suite E, Wildomar, CA 92595You can reach Steven F. Bliss ESQ. at (951) 412-2800.
Don’t leave the future to chance—secure your loved one’s well-being with expert estate planning. Contact Wildomar Probate Law today and let us help you build a secure tomorrow.