A special needs trust (SNT) is a powerful tool designed to provide for individuals with disabilities without disqualifying them from vital needs-based government benefits like Supplemental Security Income (SSI) and Medicaid. Determining what expenses an SNT can legitimately cover is a frequent question, and the permissibility of paying for storage units, specifically for medical equipment, requires careful consideration of the trust’s terms and relevant regulations. Generally, the answer is yes, but it hinges on a clear connection between the storage and the beneficiary’s health and well-being, and adherence to specific guidelines to avoid jeopardizing their public benefits. The key is ensuring the expense isn’t considered “support and maintenance” which is typically prohibited, and that the storage directly facilitates the beneficiary’s medical care or quality of life.
What expenses *can* a special needs trust cover?
SNTs are designed to supplement, not replace, government benefits. They can cover a broad range of expenses that enhance the beneficiary’s life beyond what Medicaid and SSI provide. These include things like recreational activities, travel, therapies not covered by insurance, personal care items, and even certain home modifications. According to the National Disability Rights Network, approximately 6.5 million Americans are currently utilizing some form of trust to manage assets while maintaining eligibility for public benefits. It’s crucial to understand that the trust document itself dictates what’s permissible, but it must also align with program rules. For example, expenses must be above and beyond what Medicaid would normally cover and must not be considered essential support like food or housing.
Is paying for storage considered “support and maintenance”?
This is where it gets tricky. “Support and maintenance” is the key phrase that can disqualify a beneficiary from receiving needs-based benefits. If the storage unit holds items *directly* related to medical care – a wheelchair, a specialized bed, durable medical equipment (DME) – and the beneficiary needs access to that equipment, it’s more likely to be considered a permissible expense. However, if the storage is used for personal belongings unrelated to their disability, it could be viewed as providing general support. The Social Security Administration (SSA) has indicated that approximately 20% of SNT claims are initially denied due to ambiguous expense descriptions, highlighting the importance of clear documentation. A crucial factor is demonstrating that storing the equipment in a unit is *necessary*. Perhaps the beneficiary’s home lacks space, or keeping the equipment readily available is essential for emergency situations or ongoing therapy.
A situation where storage costs caused a problem
Old Man Tiberius was a fiercely independent veteran who relied on a sophisticated respiratory machine at night. When his daughter, Elara, established a special needs trust for him, she thought she was doing everything right. He needed the machine for his breathing and the trust was meant to help cover incidentals. The machine was bulky, and Elara, wanting to declutter their small apartment, rented a storage unit to house it when Tiberius traveled to visit relatives. Unfortunately, Elara didn’t realize she needed to explicitly document *why* the storage unit was necessary – her initial application simply stated “medical equipment storage.” The Social Security Administration flagged the expense during a routine review, suspecting it was unauthorized support. Tiberius faced a temporary disruption in his SSI benefits while Elara scrambled to provide detailed explanations, proving the unit was essential for maintaining his breathing treatments when away from home and that the apartment simply didn’t have the space.
How proper planning solved a similar issue
A young woman named Maya had cerebral palsy and relied on a custom-fitted wheelchair and a variety of assistive devices. Her parents established an SNT to ensure she could maintain her independence. When they decided to renovate their home, creating an accessible space for Maya, they needed temporary storage for her equipment during the construction. This time, they proactively approached Steve Bliss, an estate planning attorney in Escondido, and worked with him to create a detailed plan. Steve helped them document that the storage was a direct result of improvements *designed to enhance Maya’s quality of life* and allow her to remain in her home, and therefore permissible under the trust. The documentation clearly outlined the renovation plans, the necessity of temporarily removing the equipment, and the long-term benefits of the project. The trust administrator smoothly approved the storage costs, and Maya’s benefits remained uninterrupted, demonstrating the power of proactive planning and professional legal guidance.
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About Steve Bliss at Escondido Probate Law:
Escondido 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 Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
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.
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Services Offered:
| estate planning | revocable living trust | wills |
| living trust | family trust | irrevocable trust |
Map To Steve Bliss Law in Temecula:
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “What is a revocable living trust and how does it work?” Or “Can family members be held responsible for the deceased’s debts?” or “How do I transfer assets into my living trust? and even: “What happens to lawsuits or judgments against me in bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.