The question of whether a special needs trust (SNT) can fund subscriptions for mental wellness apps is a common one, and the answer is generally yes, *with careful consideration and adherence to the trust’s terms and relevant regulations*. SNTs are designed to improve the quality of life for beneficiaries with disabilities without disqualifying them from needs-based public benefits like Supplemental Security Income (SSI) and Medi-Cal. This includes funding for items and services that promote health, wellbeing, and overall quality of life, and increasingly, that includes access to digital mental health resources. However, it’s not always straightforward, and a clear understanding of the rules is essential to avoid jeopardizing benefits. Approximately 1 in 5 US adults experience mental illness each year, highlighting the potential benefit of accessible mental wellness tools, and SNTs can play a crucial role in providing this access for vulnerable individuals.
What are the limitations on using SNT funds?
The primary limitation revolves around the type of SNT. There are first-party or self-settled trusts (created with the beneficiary’s own funds) and third-party trusts (funded by someone other than the beneficiary). First-party SNTs have stricter rules. Funds *cannot* be used for anything the beneficiary could otherwise afford with their own income or resources. This means if the beneficiary receives a regular SSI check and *could* theoretically pay for a $20/month app subscription, using SNT funds for that purpose could be problematic. Third-party SNTs offer more flexibility. These trusts aren’t limited by the beneficiary’s own income, allowing for a broader range of permissible expenses. Crucially, any expense must align with the trust’s stated purpose – enhancing the beneficiary’s quality of life – and be considered reasonable and necessary. As of 2023, approximately 15% of adults in the US use mental health apps, demonstrating a growing demand for these services.
How do I ensure compliance with SSI and Medi-Cal rules?
Strict adherence to the rules governing SSI and Medi-Cal is vital. SSI has a complex set of rules about income and resources, and exceeding certain limits can lead to benefit reduction or termination. Medi-Cal, California’s Medicaid program, has similar regulations. Generally, payments made directly to the service provider (the app company) are less likely to be considered income to the beneficiary than lump-sum payments. Therefore, establishing a system where the trustee pays the subscription fee directly is preferable. The trustee should keep meticulous records of all SNT expenditures, including dates, amounts, and the purpose of each payment. Documentation is crucial if any questions arise from Social Security or Medi-Cal. Remember, approximately 65 million Americans are enrolled in Medicaid, making compliance with these regulations paramount.
I once knew a family who faced a difficult situation when their son, Michael, with autism, started experiencing increased anxiety.
His parents, eager to provide him with the support he needed, purchased several mental wellness apps hoping they would help him manage his stress. They thought they were doing the right thing, but they hadn’t consulted with their estate planning attorney or considered the impact on Michael’s SSI benefits. Within a few months, Social Security contacted them, arguing that the app subscriptions were considered “unearned income” and reduced Michael’s monthly benefit. The family was devastated. They had to scramble to understand the regulations, document the expenses, and appeal the decision. The process was stressful, time-consuming, and ultimately highlighted the importance of proactive planning. They could have avoided this entire ordeal had they sought legal advice *before* making the purchases. They eventually worked through it, but it left them feeling anxious about providing for Michael’s future needs.
Thankfully, another family, the Johnsons, approached things differently.
Their daughter, Sarah, also with special needs, was struggling with depression. Recognizing the potential benefits of mental wellness apps, they immediately contacted Steve Bliss, their estate planning attorney. Steve reviewed their existing SNT, explained the relevant regulations, and helped them establish a system for funding the subscriptions. He advised them to pay the app fees directly to the provider and maintain detailed records. Furthermore, Steve emphasized the importance of documenting how the apps were contributing to Sarah’s overall wellbeing – things like improved mood, reduced anxiety, and increased engagement in activities. Because of this proactive approach, the Johnsons were able to seamlessly integrate the mental wellness apps into Sarah’s care plan without jeopardizing her benefits. The apps proved to be incredibly helpful, and Sarah flourished. They found peace of mind knowing they were providing her with the best possible support while remaining compliant with all applicable regulations.
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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
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Map To Steve Bliss Law in Temecula:
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Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
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Feel free to ask Attorney Steve Bliss about: “Should I name more than one executor for my will?” Or “Can an executor be removed during probate?” or “Can I name more than one successor trustee? and even: “Will my employer find out I filed for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.