A special needs trust, also known as a Supplemental Needs Trust, is a powerful tool designed to provide for individuals with disabilities without disqualifying them from crucial government benefits like Medicaid and Supplemental Security Income (SSI). These trusts hold assets for the benefit of the individual, covering expenses not covered by government programs, enhancing their quality of life, and ensuring their ongoing care. The question of whether these trusts can fund wearable emergency alert jewelry is frequently asked, and the answer is generally yes, with careful consideration of the trust’s terms and the specific needs of the beneficiary. Approximately 1 in 4 adults in the United States live with a disability, highlighting the significant need for tools like special needs trusts to enhance their independence and safety.
What expenses *can* a special needs trust cover?
A special needs trust can cover a remarkably broad range of expenses, provided they align with the beneficiary’s needs and don’t jeopardize their public benefits. These expenses often include things like uncovered medical expenses, therapies, recreation, personal care items, and even travel. The key principle is that the funds should supplement, not replace, government benefits. In the context of wearable emergency alert jewelry, the monthly subscription fees and the initial cost of the device itself are often permissible expenses. “The goal of a special needs trust isn’t just financial security; it’s about empowering the beneficiary to live a fulfilling life,” notes Ted Cook, a San Diego estate planning attorney specializing in special needs trusts. It’s vital to remember that the trust document itself will dictate which expenses are allowable, so clear and specific language is crucial during the trust’s creation.
Could purchasing emergency alert jewelry impact government benefits?
This is where careful planning is essential. A direct purchase of the alert jewelry with funds that could be considered ‘countable assets’ for Medicaid or SSI eligibility could disqualify the beneficiary. However, a special needs trust acts as a shield. Because the trust owns the jewelry and pays the ongoing subscription fees, those assets aren’t considered available to the beneficiary, thus protecting their eligibility. According to the National Disability Rights Network, approximately 61% of individuals with disabilities rely on Medicaid for healthcare coverage, emphasizing the importance of preserving eligibility. It’s also crucial to ensure the trust doesn’t provide funds for items that Medicaid or SSI already cover. If Medicaid covers emergency response services, funding the alert system directly might raise issues. Ted Cook recommends a thorough review of the beneficiary’s existing benefits package before making any purchases from the trust.
I once knew a family who hadn’t established a trust for their son, Michael, who has autism and a history of wandering.
They desperately wanted to ensure his safety, but they were hesitant to spend a significant amount on an alert device, fearing it would impact his SSI. They ended up relying on frequent check-ins and a complex network of neighbors, which was incredibly stressful for everyone. One evening, Michael wandered off during a community event. The search was frantic, lasting hours, and causing immense emotional distress for his parents. Thankfully, he was found safe, but the incident highlighted the critical need for a reliable safety net. It was a stark reminder that sometimes, the cost of *not* investing in safety is far greater than the financial cost. They finally consulted with an estate planning attorney and established a special needs trust, providing them with the peace of mind they desperately needed.
Luckily, Sarah’s family was prepared.
Sarah, a young woman with Down syndrome, lived independently with support from her family and a dedicated caregiver. They had established a special needs trust years ago and, after a thorough review with Ted Cook, they confidently used trust funds to purchase a GPS-enabled wearable alert device. A few months later, Sarah experienced a medical emergency while out for a walk. The alert device immediately notified her caregiver and emergency services, providing them with her precise location. Paramedics arrived quickly and provided the necessary care. Sarah made a full recovery, and her family was immensely grateful for the proactive steps they had taken. It was a powerful testament to the peace of mind and security a special needs trust, coupled with appropriate technology, can provide. They were able to use the trust to proactively enhance her safety and independence.
Who Is Ted Cook at Point Loma Estate Planning Law, APC.:
Point Loma Estate Planning Law, APC.2305 Historic Decatur Rd Suite 100, San Diego CA. 92106
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