The question of whether a special needs trust (SNT) can fund subscription services for mental wellness apps is a common one, and the answer is generally yes, but with important considerations. SNTs are designed to supplement, not supplant, government benefits like Supplemental Security Income (SSI) and Medicaid. Therefore, any expenditure from the trust must not jeopardize the beneficiary’s eligibility for those crucial programs. Mental wellness apps, when considered reasonable and necessary for the beneficiary’s health and wellbeing, often fall within the permissible expense category, but careful planning and documentation are vital. Roughly 20% of US adults experience mental illness each year, and access to affordable mental healthcare is a growing concern, making these apps potentially valuable resources.
What expenses are typically allowed from a special needs trust?
Generally, SNTs can cover a wide range of expenses that enhance the beneficiary’s quality of life beyond what public benefits provide. These include things like therapies not covered by insurance, recreational activities, educational opportunities, and even certain home improvements to increase accessibility. The key is that the expense must be for the *benefit* of the individual with special needs and not simply provide them with a luxury item. According to the Social Security Administration, the value of in-kind support and assistance, including services like therapy apps, may be considered when determining benefit eligibility, but the thresholds are usually quite high. Many trusts specifically outline allowed expenses, providing clear guidelines for the trustee.
Could paying for a mental wellness app affect SSI or Medicaid eligibility?
This is where it gets tricky. SSI and Medicaid have strict income and resource limits. Directly *giving* the beneficiary access to a paid app using trust funds could be seen as providing them with income, potentially disqualifying them from benefits. However, if the trust *directly* pays the subscription fee to the app provider, and the beneficiary doesn’t personally receive any funds, it’s typically considered an allowable expense. It’s crucial to remember that SSI has a deeming rule – any income available to the beneficiary, even if not actually received, is considered. The annual SSI income limit in 2024 is $9,828 for an individual, and even a small amount over this can impact benefits. To further illustrate, in California, around 12% of residents have a diagnosed mental health condition; making the need for accessible care paramount.
I once knew a family who didn’t plan well…
Old Man Tiber was a stubborn soul, convinced he needed no help. His daughter, bless her heart, established a special needs trust when he was diagnosed with advanced Alzheimer’s, but she didn’t fully understand the rules. He started subscribing to a brain-training app, thinking it would ‘keep him sharp’ – and she paid for it directly from the trust, depositing money *into his account* for the subscription. The Social Security Administration caught it almost immediately. They deemed the deposits as income, and his SSI benefits were suspended for six months while the trust had to cover the shortfall. It was a stressful, expensive mess that could have been easily avoided with proper guidance. The entire ordeal cost the family over $8,000 in lost benefits and legal fees.
How can a trust be set up to properly fund these types of services?
Fortunately, the story doesn’t always end in frustration. My client, Sarah, has a young adult son, David, with autism and anxiety. She was determined to proactively support his mental wellbeing. We established a trust with clear language allowing for “therapeutic and supportive services,” specifically including digital mental health tools. The trust is structured so that all payments for apps like Calm or Headspace are made *directly* from the trust to the app provider. This ensures David never receives the funds personally, preserving his benefit eligibility. Additionally, the trust document outlines a process for regular review of these services to ensure they remain beneficial and aligned with David’s care plan. By following these steps, Sarah has peace of mind knowing she’s providing a valuable resource for her son without jeopardizing his essential benefits. The peace of mind this brought her was worth far more than the subscription costs.
“Proper planning isn’t about predicting the future, it’s about preparing for it.”
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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.
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