The question of whether a special needs trust (SNT) can fund skill-building board games or tools is a common one for families planning for the long-term care of a loved one with special needs. The short answer is generally yes, but with crucial caveats rooted in maintaining eligibility for needs-based government benefits like Supplemental Security Income (SSI) and Medi-Cal. SNTs are specifically designed to supplement, not supplant, public assistance. Approximately 65 million Americans—about 26% of adults—have some type of disability, and many rely on these benefits, making careful planning essential. The key lies in ensuring that the purchases are considered “supplemental” and do not interfere with the beneficiary’s ability to receive necessary care and support. Expenditures must align with the beneficiary’s health, education, maintenance, and support—and that includes fostering skill development.
What expenses qualify under an SNT?
An SNT can cover a remarkably broad range of expenses as long as they directly benefit the beneficiary and don’t disqualify them from government assistance. This goes far beyond basic needs like food and shelter. Think about items that promote independence, education, and recreation. Skill-building board games, adaptive tools for daily living, art supplies, musical instruments, and even specialized software can all be legitimate expenses. In California, the average cost of ongoing care for an individual with developmental disabilities can exceed $75,000 per year, so effectively utilizing an SNT is vital. The trust documents should specifically allow for these types of purchases, providing clear guidelines for the trustee. It’s also important to maintain detailed records of all expenditures to demonstrate compliance with program rules.
Could purchasing games affect benefit eligibility?
This is where it gets tricky. If the games or tools are considered “luxury items” or contribute to the beneficiary’s ability to earn income, they could jeopardize benefits. For example, a high-end gaming computer solely for entertainment would likely be disallowed. However, a computer with adaptive software designed to help the beneficiary learn to read or communicate could be perfectly acceptable. The line can be blurry, and the rules are complex. According to the Social Security Administration, resources exceeding $2,000 can disqualify someone from SSI, so careful management of trust assets is critical. It’s important to remember the ‘look-back’ period – certain transfers made within five years of applying for Medi-Cal could result in a penalty period of ineligibility. A crucial aspect to note is how the expenditure aligns with the beneficiary’s individualized program plan (IPP).
I remember Mrs. Gable, and the unintended consequences…
I recall a situation with a client, Mrs. Gable, whose son, David, had autism. Driven by a desire to connect with David, she purchased an expensive collection of model trains, believing it would stimulate his cognitive skills and provide a shared hobby. She did this without consulting us about the implications for his SSI benefits. Unfortunately, because the trains were viewed as non-essential and not directly tied to his therapeutic goals, Social Security determined that the purchase constituted an excess resource, resulting in a temporary suspension of his benefits. It was a frustrating situation – Mrs. Gable’s intentions were good, but she hadn’t considered the complex rules surrounding SNTs. She was devastated when David’s services were temporarily affected, highlighting the need for careful planning and expert guidance. It emphasized how seemingly benign purchases could have significant consequences without proper oversight.
How did Mr. Henderson get it right, with proactive planning?
More recently, Mr. Henderson came to us with a different approach. His daughter, Emily, had Down syndrome, and he wanted to fund her participation in a therapeutic art program, including specialized art supplies and adaptive tools. We worked with him to draft a trust amendment specifically authorizing these expenditures as “qualified therapeutic activities” directly related to Emily’s IPP. We also ensured that the trust document included language outlining the criteria for approved purchases and requiring documentation to support their therapeutic value. As a result, Emily was able to enjoy the art program without any disruption to her benefits. This proactive approach not only ensured compliance but also allowed Emily to flourish and develop her creative talents. It was a rewarding experience to see how careful planning and expert guidance could make a positive difference in a family’s life and demonstrates that with proactive planning, trust funds can truly empower individuals with special needs.
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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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