The question of whether a special needs trust (SNT) can fund advanced academic degrees is complex, heavily reliant on the specific trust language, the beneficiary’s needs, and adherence to Supplemental Security Income (SSI) and Medicaid regulations. Generally, SNTs are designed to supplement, not supplant, government benefits. Funding a degree program *could* jeopardize those benefits if not carefully structured and administered. According to the National Disability Rights Network, approximately 61% of individuals with disabilities rely on SSI as a primary income source, making careful benefit preservation crucial. However, with meticulous planning, it is often possible to use SNT funds for educational pursuits that demonstrably benefit the beneficiary’s well-being and future self-sufficiency.
What expenses *can* a special needs trust cover?
Typically, SNTs can pay for expenses that enhance the beneficiary’s quality of life *beyond* what Medicaid and SSI provide. This includes things like therapies not covered by insurance, recreational activities, specialized equipment, and even certain types of housing. The key is that these expenses must not be considered “support and maintenance” – the basic necessities of life that SSI and Medicaid are intended to cover. For example, a trust could fund art classes to stimulate creativity or a specialized computer to aid communication. The Center for Medicare and Medicaid Services (CMS) emphasizes that SNT funds should be used to *supplement* benefits, not replace them, ensuring the beneficiary maintains access to crucial government assistance. Trusts can also cover costs related to achieving a higher quality of life and promoting independence.
Could paying for a degree be considered “support and maintenance”?
This is where things get tricky. Traditionally, funding a degree program could be viewed as providing “support and maintenance” because it’s seen as contributing to the beneficiary’s overall income-earning potential. However, the rules have evolved, and there’s growing acceptance that *certain* educational expenses can be permissible, particularly if the beneficiary has a documented need for specialized education or training that goes beyond a typical degree. For example, if the beneficiary has cognitive disabilities that necessitate specialized tutoring or adaptive learning technologies to succeed in college, those costs might be covered. Moreover, funding for “life skills” courses that focus on independence and self-sufficiency are generally permissible. In California, where Steve Bliss practices, the courts are increasingly open to approving SNT distributions for education that clearly promotes the beneficiary’s well-being and aligns with their individualized program plan (IPP).
I remember Mrs. Gable, a lovely woman who came to us after her son, David, had been accepted into a fantastic engineering program
David had cerebral palsy, and his mother had diligently funded a SNT throughout his childhood. She was thrilled he got in but terrified that using trust funds for tuition would disqualify him from SSI. She’d heard horror stories of benefits being terminated due to seemingly harmless trust distributions. We discovered that David’s acceptance was contingent on him completing a pre-engineering program to strengthen his foundational math and science skills. The program wasn’t covered by any government assistance, and without it, he would likely fail out of college. It was a clear case where funding the program was essential to his long-term success and independence. We meticulously documented the need, obtaining letters from his doctors, therapists, and university officials. We presented a compelling case to the Social Security Administration, demonstrating that the program was an *enhancement* to his capabilities, not a replacement for basic support.
But there was Mr. Henderson, who initially approached us after his daughter, Sarah, had already enrolled in law school using SNT funds
He hadn’t consulted with an attorney beforehand, assuming any educational expense was automatically covered. It quickly became apparent that his approach was problematic. The SSA determined that funding law school constituted providing “support and maintenance” because it was directly aimed at increasing Sarah’s future earning potential. Her benefits were immediately suspended, and he faced a challenging battle to reinstate them. Fortunately, through careful negotiation and a detailed explanation of Sarah’s unique circumstances – she had a learning disability that required specialized support services in law school – we were able to reach a settlement. The SSA agreed to reinstate a portion of her benefits, but only after Mr. Henderson agreed to contribute a significant amount of his own funds to offset the perceived benefit increase. It was a painful lesson demonstrating the importance of proactive planning. It highlighted the need for establishing clear guidelines with the SSA *before* making any significant trust distributions for education. Steve Bliss and his firm are adept at navigating these complex regulations to protect the beneficiary’s long-term interests.
<\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:
| estate planning | revocable living trust | wills |
| living trust | family trust | estate planning attorney near me |
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: “What should I consider when choosing a beneficiary?” Or “What happens when there’s no next of kin and no will?” or “How do I set up a living trust? and even: “How soon can I start rebuilding credit after a bankruptcy discharge?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.