What Expenses Can Be Paid From a Special Needs Trust
What Can a Special Needs Trust Pay For?
- Feb twelfth, 2019
A special needs trust is designed to provide a person with a disability the funds to enhance her quality of life while at the same time assuasive her to remain eligible for needs-based public benefits. Government programs like Medicaid and Supplemental Security Income (SSI) provide essentials, such every bit medical care, food, clothing and shelter. Special needs trusts are intended to supplement, not replace, this kind of bones support. Such trusts pay for annihilation the trust document provides for, including comforts and luxuries that meager public assistance funds don't cover, hence the term "special needs."
But what are these special needs? A special needs trust has been likened to a "parent's pocket" -- that is, it pays for the kinds of things that a parent would just reach into his or her pocket to embrace.
These trusts typically pay for things like education, recreation, counseling, and medical attention beyond the unproblematic necessities of life.
Here are some examples of expenses that a special needs trust might encompass:
- Medical and dental expenses non covered elsewhere
- Special equipment like wheelchairs or specially-equipped vans
- Therapy or rehabilitation services
- Training and instruction
- Travel, which can include the price of a companion
- Recreation and entertainment (summer camp, movies or social events, videos, sports equipment)
- Electronic equipment and appliances, computers
- Payments for a companion
- Legal or guardianship expenses
- Insurance
- Burying expenses
And hither are some things a special needs trust tin spend coin on that you may not accept idea of:
- a motorcar
- a ride share membership (Uber, Lyft, etc.)
- a bus/runway pass
- a vacation
- a domicile
- help with starting a business organization
All the same, there are other things a special needs trust should avert paying for. Trustees should typically never give an SSI or Medicaid casher cash or a greenbacks equivalent, or pay for food or shelter -- at to the lowest degree without get-go consulting a special needs planner. The trustee, in consultation with the planner, might desire to apply trust funds for nutrient and shelter if the trustee decides doing so is in the trust beneficiary'south all-time involvement despite a possible loss or reduction in public aid.
Once you lot have taken greenbacks, housing and food off the table, however, a special needs trust tin typically pay for most other things a beneficiary might need to supplement his lifestyle. But because these rules are very complicated, it is always best to sit downwardly with your special needs planner to discuss what you intend to do with your trust earlier making any payments to anyone.
Concluding Modified: 02/12/2019
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Source: https://specialneedsanswers.com/what-can-a-special-needs-trust-pay-for-17061
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