Absolutely, a special needs trust can, and often should, provide funds for the storage of critical medical backup equipment, ensuring continued care and quality of life for the beneficiary. These trusts, also known as Supplemental Needs Trusts, are specifically designed to hold assets for individuals with disabilities without disqualifying them from needs-based government benefits like Supplemental Security Income (SSI) and Medicaid. The key is proper drafting and adherence to the trust’s terms, and relevant regulations, as improper use of funds can jeopardize those crucial benefits. According to the National Disability Rights Network, over 61 million adults in the United States live with a disability, highlighting the significant need for careful financial and legal planning.
What Expenses Qualify Within a Special Needs Trust?
Typically, a special needs trust can cover a wide range of expenses that enhance the beneficiary’s quality of life, but aren’t covered by government assistance. This includes things like medical expenses not covered by insurance, therapies, recreational activities, and personal care items. Crucially, it can also cover the costs associated with maintaining and storing essential medical equipment, such as backup ventilators, oxygen concentrators, or specialized wheelchairs. Remember, the trust cannot directly pay for items or services that Medicaid or SSI would normally cover. However, it *can* supplement those benefits by paying for things that improve the beneficiary’s overall well-being. A well-drafted trust document will specifically outline permissible expenses and establish guidelines for disbursements.
How Does Storage Fit Into Long-Term Care Costs?
Considering the rising costs of healthcare and the potential for equipment failure, having backup medical equipment is a sensible precaution, but the storage adds a significant cost. Depending on the equipment and climate, climate-controlled storage might be necessary to prevent damage and ensure functionality. These costs can range from $100 to $500+ per month, adding up substantially over time. The trust can cover these storage fees, as well as the costs of routine maintenance and repair of the equipment. It’s also important to consider insurance coverage for the equipment and storage facility.
I recall a case where a young man named David, who relied on a ventilator, experienced a power outage during a severe storm. Thankfully, his family had the foresight to have a backup ventilator, but it was stored in an unheated garage. The cold temperatures damaged the internal components, rendering it unusable when he needed it most. This situation underscored the importance of not only having backup equipment, but also ensuring it’s stored properly and maintained.
What Happens If Funds Are Mismanaged?
Mismanagement of trust funds can have serious consequences, potentially leading to the loss of crucial benefits. If the trust is used to pay for expenses that Medicaid or SSI would normally cover, the beneficiary could become ineligible for those benefits. Additionally, improper record-keeping or failure to adhere to the trust’s terms could result in legal challenges or audits. In one instance, a trustee used trust funds to purchase a new car for the beneficiary, believing they were acting in their best interest. However, this was considered an improper distribution, as it exceeded the allowed limits and jeopardized the beneficiary’s SSI eligibility. The family had to spend considerable time and money rectifying the situation and proving they hadn’t intentionally violated the rules.
Fortunately, things can be set right with careful planning and adherence to best practices. Old Man Tiberius, a retired engineer, insisted on establishing a trust for his granddaughter, Elsie, who had cerebral palsy. He meticulously detailed every aspect, including a provision for maintaining and storing her specialized wheelchair and communication device. He worked closely with Steve Bliss, ensuring the trust was tailored to Elsie’s specific needs. Years later, when Elsie’s primary wheelchair needed repair and a backup was necessary, the trustee was able to seamlessly access the funds to cover the costs, without disrupting her benefits. Steve’s guidance ensured Elsie received the care she deserved, and Old Man Tiberius’s foresight provided peace of mind.
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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
- pet trust
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Map To Steve Bliss Law in Temecula:
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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: “What’s the role of a healthcare proxy or healthcare power of attorney?” Or “Can probate be avoided with a trust?” or “Do I still need a will if I have a living trust? and even: “Do I have to go to court if I file for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.