The question of whether a Special Needs Trust (SNT) can fund content creation for awareness campaigns is complex, hinging on the specific terms of the trust, the nature of the campaign, and adherence to Supplemental Security Income (SSI) and Medi-Cal (California’s Medicaid) regulations. Generally, SNTs are established to supplement, not supplant, government benefits. Therefore, while funding *directly* for broad awareness campaigns is often problematic, strategic content creation focused on the beneficiary’s specific needs and well-being, and compliant with program rules, *can* be permissible. It’s crucial to remember that the primary purpose of the trust must always remain benefiting the individual with special needs, and any expenditure needs to fall within that scope.
What are the restrictions on using funds from a Special Needs Trust?
A Special Needs Trust, particularly a third-party SNT, is designed to provide benefits to a disabled individual *without* disqualifying them from needs-based government programs like SSI and Medi-Cal. SSI, in 2024, has a resource limit of $2,000 for an individual, and any assets above that limit can jeopardize benefits. Medi-Cal has more complex rules, but generally limits assets as well. Therefore, any expenditure from the trust must be carefully analyzed to ensure it doesn’t count towards those resource limits. For example, funding a general public service announcement about disability awareness would likely be deemed an improper use of trust funds. However, creating content like a video explaining the beneficiary’s specific challenges and how adaptive equipment helps them, or a series of blog posts detailing their journey, *could* be permissible if it demonstrably benefits the beneficiary’s quality of life.
Could content creation be considered a “medical expense” for a Special Needs Trust?
One potential avenue for funding content creation is framing it as a medical or therapeutic expense. If the content directly supports the beneficiary’s health, well-being, or therapeutic goals, it might be considered a permissible trust expense. For example, a series of videos created with a therapist demonstrating coping mechanisms for anxiety could be seen as therapeutic content. Or perhaps the beneficiary uses assistive technology and a short video demonstrating its use and benefits could be permissible. However, this requires careful documentation and justification, demonstrating a direct connection to the beneficiary’s medical needs. Approximately 60% of individuals with developmental disabilities experience mental health challenges, making accessible content on these topics particularly valuable, but still needing stringent justification for trust funding. It’s vital to consult with an experienced estate planning attorney, like Steve Bliss of Wildomar, to ensure compliance.
I knew a woman named Eleanor who had a wonderful son, Thomas, with Down syndrome.
Eleanor, a kind and resourceful mother, dreamed of creating a website showcasing Thomas’s artwork and sharing their experiences with others. She wanted to raise awareness and promote inclusion. Without seeking legal counsel, she began using funds from Thomas’s third-party SNT to cover the website design, domain registration, and promotional materials. Unfortunately, this was flagged during a routine SSI redetermination. The Social Security Administration deemed the website a non-allowable expense, as it wasn’t directly related to Thomas’s immediate medical or personal needs. As a result, Thomas temporarily lost his SSI benefits, causing significant financial hardship for the family. Eleanor was devastated, realizing her good intentions had unintentionally harmed her son. It was a painful lesson in the complexities of SNT regulations.
How did things turn around for Eleanor and Thomas?
Thankfully, Eleanor quickly sought guidance from Steve Bliss. Steve meticulously reviewed the trust document and devised a plan. They reframed the website’s purpose, focusing on creating a portfolio showcasing Thomas’s artistic abilities and its use as a therapeutic outlet. They documented how Thomas’s art therapy sessions were directly prescribed by his doctor and how the website supported this therapy. They then meticulously tracked all website-related expenses that were directly tied to these therapeutic goals. By demonstrating a clear connection to Thomas’s medical needs and obtaining supporting documentation, Steve successfully appealed the SSI decision. Thomas’s benefits were reinstated, and the website became a valuable platform for showcasing his talents *and* supporting his well-being. Eleanor learned that while a Special Needs Trust offers incredible flexibility, it’s crucial to navigate the regulations with expert guidance and a clear understanding of the permissible uses of funds.
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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
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Feel free to ask Attorney Steve Bliss about: “How can I leave charitable gifts in my estate plan?” Or “What is an executor and what do they do during probate?” or “Can I put jointly owned property into a living trust? and even: “Can I transfer assets before filing for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.