Absolutely, a special needs trust can be strategically designed to cover the costs of therapy and counseling, but it’s not always a simple yes or no answer. These trusts, often called Supplemental Needs Trusts (SNTs), are established to provide for individuals with disabilities without disqualifying them from crucial needs-based public benefits like Supplemental Security Income (SSI) and Medi-Cal. The key lies in ensuring these payments don’t disrupt eligibility for those benefits, and that the trust is properly drafted and administered. Approximately 1 in 4 Americans live with a disability, and for many, ongoing therapeutic support is essential to maintaining their quality of life and independence, making this a vital consideration in estate planning.
What expenses *can* a special needs trust cover?
A properly structured SNT can cover a wide range of expenses beyond basic needs. This includes things like specialized equipment, recreational activities, travel, and, importantly, therapeutic services. Therapy, whether it’s individual counseling, group therapy, behavioral therapy, or occupational therapy, falls into this category, provided it’s not considered “medical care” already covered by Medi-Cal. According to the National Disability Rights Network, over 60% of individuals with disabilities require some form of ongoing mental health support. The trust document should specifically authorize these types of payments and outline the process for approval, ensuring transparency and accountability. It is important to remember that the goal is to *supplement*, not *supplant*, public benefits.
What happens if the trust pays for *covered* medical expenses?
Here’s where things get tricky. If the trust directly pays for services that Medi-Cal *already* covers, it can trigger a reduction or loss of benefits. Medi-Cal views these payments as resources available to the beneficiary, potentially rendering them ineligible. For instance, if a beneficiary is receiving SSI payments of $943 per month and the trust pays for therapy that Medi-Cal would have covered, that $943 could be reduced or eliminated. To avoid this, the trust must carefully navigate these issues. One common strategy is to establish a “medical expense only” sub-account within the trust, and carefully track all medical-related expenses before making any payment. This ensures that only expenses *not* covered by public benefits are paid from the trust. It’s a bit like a delicate balancing act.
I once knew a woman named Eleanor…
Eleanor’s son, Thomas, had autism and relied heavily on behavioral therapy. She diligently saved money her whole life to ensure he’d always have the support he needed. Unfortunately, she passed away without a properly drafted special needs trust. Her well-intentioned inheritance, while substantial, immediately disqualified Thomas from SSI and Medi-Cal. The sudden loss of benefits meant he lost access to his essential therapies and support services. Her family was left scrambling to navigate the complex legal system, ultimately needing to establish a trust *after* her death – a much more difficult and costly process, and a time when Thomas desperately needed continuity of care. It was a heartbreaking reminder that proper planning is crucial for protecting loved ones with disabilities.
But there’s a happy ending with young Mateo…
Mateo, a bright young boy with cerebral palsy, benefited from a thoughtfully created special needs trust. His parents worked closely with Steve Bliss, to ensure the trust specifically authorized payments for his ongoing speech and occupational therapies. They were meticulous in documenting all expenses and ensuring the trust only covered services *not* already provided by Medi-Cal. Because of this careful planning, Mateo continued to receive both his public benefits *and* the supplemental therapies he needed to thrive. Today, he’s a confident and engaged student, and his parents have the peace of mind knowing his future is secure. It’s a testament to the power of proactive estate planning and the importance of working with an attorney experienced in special needs trusts. And as of 2023, the number of SNTs established has increased by 15% year over year, indicating more families are taking steps to secure their loved ones’ futures.
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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
living trust
revocable living trust
family trust
wills
banckruptcy attorney
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: “Can I create an estate plan on my own or do I need a lawyer?” Or “What is probate and why does it matter?” or “How do I fund my trust with real estate or property? and even: “Can I get a mortgage after filing for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.