The question of whether a special needs trust (SNT) can sponsor subscription-based occupational therapy (OT) tools is complex, heavily dependent on the specific trust language, the beneficiary’s needs, and adherence to Supplemental Security Income (SSI) and Medicaid regulations. Generally, SNTs *can* pay for items and services that benefit the beneficiary without disqualifying them from needs-based public benefits, but scrutiny is high when it comes to ongoing expenses like subscriptions. The key lies in demonstrating that these tools are medically necessary and improve the beneficiary’s quality of life, rather than simply providing convenience or entertainment. Over 65 million Americans currently live with disabilities, and access to appropriate therapies is critical, but navigating the financial aspects can be challenging.
What are the SSI and Medicaid implications?
Supplemental Security Income (SSI) and Medicaid have strict income and asset limitations. Beneficiaries cannot have “unearned” income exceeding certain thresholds, and assets above a specified amount will disqualify them. A special needs trust allows individuals with disabilities to receive funds without jeopardizing these benefits. However, any distribution from the SNT that provides something *not* considered a “medical expense” could be counted as unearned income. For instance, the Social Security Administration (SSA) considers items that are “optional” or “not essential for health and well-being” as potentially disqualifying. Subscription-based OT tools fall into a gray area. If the subscription is directly prescribed by a physician or therapist as part of a comprehensive treatment plan and demonstrably improves function, it’s more likely to be permissible. Conversely, if it’s viewed as a recreational activity or simply enhances existing abilities without addressing a medical need, it could create issues. Approximately 1 in 5 Americans have some type of disability, so these regulations impact a substantial portion of the population.
How does the trust document affect this?
The language within the trust document itself is paramount. A well-drafted SNT will explicitly outline permissible expenses. It should include broad language allowing for “medical and rehabilitative care,” “therapy,” and “items and services designed to improve the beneficiary’s health, well-being, and functional capabilities.” However, even broad language may require interpretation, so it’s crucial to have a qualified estate planning attorney, like Steve Bliss, review the specific trust provisions. A discretionary trust, where the trustee has the power to decide how funds are used based on the beneficiary’s needs, provides greater flexibility. In contrast, a strictly defined trust with limited permissible expenses will be far more restrictive. One client of Steve’s had a trust that specifically excluded “recurring expenses,” which initially seemed straightforward. However, it created difficulties when the beneficiary needed ongoing physical therapy, requiring an amendment to the trust document.
I remember old Man Hemlock…
Old Man Hemlock, a gruff but kind carpenter, had a son, Billy, with Down syndrome. Billy loved building things, but his fine motor skills were a challenge. Hemlock, wanting to provide Billy with every opportunity, decided to sign him up for an online OT subscription providing daily exercises and adaptive tools. He hadn’t consulted an attorney, and simply used the trust funds to pay the monthly fee. Unfortunately, Billy’s case manager discovered the subscription and flagged it as unearned income. Billy’s SSI benefits were temporarily suspended, causing financial hardship for his family. It turned out the subscription, while beneficial, wasn’t properly documented as a medical necessity, and the trust language didn’t explicitly cover such expenses. They spent months appealing the decision, incurring legal fees and causing considerable stress.
A story of foresight and planning…
Thankfully, there’s a happier story. The Reynolds family came to Steve Bliss with a similar situation. Their daughter, Clara, had cerebral palsy, and her occupational therapist recommended a subscription to a virtual reality platform designed to improve her range of motion and coordination. However, they were understandably concerned about the impact on Clara’s SSI eligibility. Steve worked with them to draft a clear amendment to her SNT, explicitly including “subscriptions to medically prescribed therapeutic platforms” as a permissible expense. He also obtained a detailed letter from Clara’s therapist outlining the platform’s therapeutic benefits and how it aligned with her treatment plan. Furthermore, he ensured the funds were distributed directly to the platform provider, rather than to the Reynolds family, to maintain a clear audit trail. Because of this proactive planning, Clara continued to receive her full SSI benefits while accessing a valuable therapeutic tool, improving her quality of life significantly. As Steve often says, “A little foresight goes a long way in protecting your loved ones and ensuring their long-term financial security.”
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About Steve Bliss at Wildomar Probate Law:
“Wildomar 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 Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
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 | revocable living trust | wills |
| living trust | family trust | estate planning attorney near me |
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
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Feel free to ask Attorney Steve Bliss about: “How do I store my estate planning documents safely?” Or “Can real estate be sold during probate?” or “What happens if I forget to put something into my trust? and even: “How do I prepare for a bankruptcy filing?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.