The question of whether a special needs trust can cover temporary accessible furniture rental is a common one, and the answer is generally yes, but with important considerations. Special needs trusts, also known as supplemental needs trusts, are designed to improve the quality of life for individuals with disabilities without jeopardizing their eligibility for crucial government benefits like Supplemental Security Income (SSI) and Medicaid. These trusts operate under the principle of *supplementing*, not supplanting, public assistance. Therefore, any expenditure from the trust must align with this principle, meaning it can’t pay for things that government programs already cover. This is where temporary accessible furniture falls into a gray area, but is generally permissible.
What expenses *can* a special needs trust cover?
A properly structured special needs trust can cover a wide range of expenses that enhance an individual’s life but aren’t provided by government programs. This includes things like therapies not covered by insurance, recreational activities, specialized equipment, and even personal care services. According to a 2023 report by the National Disability Rights Network, approximately 61% of individuals with disabilities report needing additional financial assistance to cover essential expenses not met by public benefits. The key is demonstrating that the expenditure *improves* quality of life and isn’t a replacement for services Medicaid or SSI would otherwise provide. For temporary accessible furniture, this could include a specialized adjustable bed for recovery after surgery, a ramp for short-term mobility issues, or a comfortable chair that aids in therapeutic exercises.
What happens if the trust pays for something Medicaid *should* cover?
This is where things get tricky. If a special needs trust pays for something Medicaid *should* be covering, it can create a “payback” situation. Medicaid has the right to recoup funds from the trust to cover expenses they paid for. For example, if Medicaid pays for a hospital bed and the trust *also* pays for one, Medicaid will likely seek reimbursement from the trust. This can significantly diminish the funds available to the beneficiary. A case study from the Special Needs Alliance revealed that approximately 15% of special needs trusts encounter Medicaid payback claims due to improper spending. The trustee must carefully document all expenditures and demonstrate that the funds are being used to supplement, not replace, existing benefits. This is why meticulous record-keeping and consultation with an experienced estate planning attorney like Steve Bliss are crucial.
I once knew a family who didn’t understand these rules…
Old Man Tiberius, a retired carpenter, was fiercely independent. After a stroke left him with limited mobility, his daughter, Clara, established a special needs trust to help him maintain his independence. She, wanting to make things comfortable, purchased a brand new power lift recliner for him, without checking if it was covered by his Medicaid plan. A few months later, they received a notice from Medicaid demanding repayment for the chair, arguing it was durable medical equipment they would have otherwise provided. Clara was devastated, not understanding the complexities of the trust. She had to sell some of her own treasured possessions to cover the bill, a painful lesson learned. It highlighted how seemingly small purchases could create significant problems without proper planning.
How did careful planning ultimately save the day?
Luckily, another family, the Hayes, learned from others’ mistakes. Their son, Ethan, needed temporary accessible furniture while recovering from a severe leg injury. Before making any purchases, they consulted with Steve Bliss. Steve explained that while the trust *could* pay for the rental of a hospital bed and a wheelchair ramp, they needed to obtain a doctor’s letter confirming the *temporary* nature of the need and that Medicaid would not cover it. They diligently documented the rental agreement and the doctor’s letter, submitting it with the trust’s expense reports. Months later, when Ethan fully recovered and no longer needed the equipment, the trust’s funds remained intact, providing him with resources for future therapies and enriching activities. This showcased the power of proactive planning and the value of expert guidance. As Steve always says, “A little foresight can save a lot of heartache.”
<\strong>
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:
- living trust
- revocable living trust
- estate planning attorney near me
- family trust
- wills and trusts
- wills
- estate planning
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
>
Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “How often should I update my estate plan?” Or “How can joint ownership help avoid probate?” or “How much does it cost to create a living trust? and even: “Can creditors still contact me after I file for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.