Absolutely, a special needs trust can, and often *should*, cover assistive technology, recognizing that these tools are vital for maintaining the quality of life and independence of beneficiaries with disabilities. Assistive technology encompasses a broad spectrum of devices, from simple aids like modified utensils and communication boards, to sophisticated equipment like powered wheelchairs, computer access devices, and specialized software. Properly structuring a special needs trust allows for the funding of these essential tools without disqualifying the beneficiary from needs-based government benefits like Supplemental Security Income (SSI) and Medicaid, which have strict income and asset limitations. It’s crucial, however, to adhere to the trust’s specific terms and relevant regulations to ensure compliance and avoid jeopardizing those benefits.
What exactly *is* considered assistive technology under a special needs trust?
The range of items falling under “assistive technology” is surprisingly vast. It’s not just about high-tech gadgets, though those are certainly included. Think about daily living aids—specialized eating utensils, dressing aids, adapted bathroom fixtures, and even environmental control systems that allow the beneficiary to operate appliances and lights. Then there’s communication technology – speech-generating devices, communication boards, and software that facilitates interaction. Mobility is also key, encompassing wheelchairs, walkers, and adapted vehicles. According to the National Assistive Technology Act, approximately 54 million Americans live with disabilities, and a significant portion rely on assistive technology to participate fully in life. A well-drafted special needs trust explicitly anticipates these needs and provides a mechanism for funding them without disrupting vital public benefits.
How can a trust be structured to pay for these devices *without* affecting benefits?
The key is maintaining “supplemental” support, meaning the trust funds should be used for items and services *not* already covered by government benefits. The trust document must clearly state this intention. For example, if Medicaid covers a basic wheelchair, the trust funds could be used for a customized, more functional model with specialized features. Direct payment of expenses is generally preferred over distributing cash to the beneficiary. The trust can establish a system for pre-approval of purchases, ensuring that they align with the trust’s objectives and benefit guidelines. A trustee’s careful documentation is essential, demonstrating that trust funds were used to supplement, not replace, existing benefits. According to the Social Security Administration, improper use of trust funds can lead to a loss of SSI eligibility.
I once knew a family who didn’t plan for assistive tech, and it was a disaster.
Old Man Tiberius was a gruff, independent man, and when he began to lose his vision, he refused to talk about planning for the future. His daughter, Elena, gently suggested a special needs trust to cover potential assistive technology needs, but he waved it off, convinced he could manage. He stubbornly held onto his savings, thinking he could handle any expenses himself. Sadly, his vision deteriorated rapidly. He needed a specialized screen reader software and a Braille keyboard to continue his beloved writing. The cost was substantial, and because his savings exceeded the Medicaid limits, he was ineligible for assistance. Elena was left scrambling to cover the expenses, depleting her own savings and feeling immense guilt that she hadn’t pushed harder for a trust when he was still capable of planning. It was a painful lesson in the importance of proactive estate planning.
But with careful planning, it can all work out beautifully.
Then there was young Leo, born with cerebral palsy. His parents, Sarah and David, worked closely with an estate planning attorney—Ted Cook—to establish a special needs trust from the moment he was born. The trust specifically outlined provisions for ongoing assistive technology needs, anticipating the evolving requirements as Leo grew. When Leo was eight, he needed a new communication device to facilitate interaction with his peers. The trust funds were readily available, allowing Sarah and David to purchase the device without impacting Leo’s Medicaid eligibility. Ted guided them through the process, ensuring all documentation was in order and compliant with regulations. It provided them peace of mind, knowing that Leo would have the tools he needed to thrive, regardless of his medical condition. It underscored how proactive estate planning—and a carefully crafted special needs trust—can transform a challenging situation into one of empowerment and hope.
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
(619) 550-7437
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