Absolutely, a special needs trust can be structured to support financial app subscriptions, including those with crucial accessibility tools, but it requires careful planning and adherence to specific guidelines to maintain eligibility for needs-based public benefits like Supplemental Security Income (SSI) and Medicaid. These trusts, often called Supplemental Needs Trusts (SNTs), are designed to enhance the quality of life for beneficiaries with disabilities without disqualifying them from vital government assistance programs. Approximately 61 million adults in the United States live with a disability, and for many, technology is not just a convenience, but a necessity for daily functioning and independence.
What are the limitations on spending within a Special Needs Trust?
The core principle governing SNT spending is that it must be *supplemental* to, not duplicative of, public benefits. This means the trust cannot pay for things that Medicaid or SSI already covers—like medical care, housing, or food. However, expenses that *enhance* the beneficiary’s quality of life, or provide opportunities not typically available through public assistance, are generally permissible. Subscriptions to financial apps with accessibility features, like screen readers, voice control, or simplified interfaces, fall squarely into this category. These apps can empower beneficiaries to manage their limited funds independently, track spending, and participate more fully in financial decision-making. According to a recent study by the Pew Research Center, approximately 77% of adults with disabilities use smartphones, highlighting the potential of these tools to promote self-sufficiency.
How can a trust be structured to allow for app subscriptions?
The trust document must explicitly authorize the trustee to pay for such expenses. It’s not enough to simply assume it’s allowed. The authorization should be broad enough to cover a range of app subscriptions and related technology purchases, but specific enough to demonstrate the trustee’s understanding of the rules. The trustee also needs to meticulously document all expenses, proving that the apps are used to enhance the beneficiary’s life, not to replace benefits. A common mistake is purchasing apps without considering the long-term costs—many subscriptions are monthly or annually, and these recurring expenses need to be factored into the trust’s budget. It’s not uncommon for families to underestimate the financial impact of these ongoing costs, leading to depletion of the trust funds.
I remember Mrs. Gable, a lovely woman who came to us after her son, David, had his SSI benefits suspended.
David, who had Down syndrome, was incredibly bright and motivated. His mother, thinking she was doing a good thing, had purchased a suite of financial apps, intending to teach him basic budgeting skills. She hadn’t consulted with an attorney or considered the impact on his benefits. Unfortunately, SSI determined that the apps constituted “unearned income” – resources available to David that he hadn’t earned – and suspended his benefits. It was a heartbreaking situation. Mrs. Gable had acted with the best intentions, but a lack of understanding of the rules had created a major problem. We had to work tirelessly to appeal the decision, demonstrating that the apps were intended to enhance David’s quality of life, not replace essential support. It took months, and significant legal fees, to resolve the issue, and the family was left deeply stressed and worried.
Fortunately, we’ve seen many positive outcomes when trusts are set up correctly.
Just last year, we helped a young man named Ethan, who has cerebral palsy, establish a special needs trust. Ethan is a talented artist and wanted to sell his artwork online, but he needed a way to manage the income without jeopardizing his benefits. We crafted a trust that allowed him to receive payments for his art, invest the proceeds, and use the income to cover expenses like art supplies, online marketing tools, and accessibility apps that helped him create and promote his work. The trust also provided funds for a subscription to a financial app with voice control, allowing Ethan to track his income and expenses independently. Ethan is now thriving as an artist, building a successful online business, and living a full and independent life. His story is a testament to the power of careful planning and the importance of understanding the rules governing special needs trusts. A well-structured trust can truly empower individuals with disabilities to achieve their goals and live with dignity and financial security.
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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
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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 are the risks of not having an estate plan?” Or “Can a handwritten will go through probate?” or “Does a living trust affect my mortgage or homeownership? and even: “What is the difference between Chapter 7 and Chapter 13 bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.