For families caring for individuals with special needs, ensuring access to necessary resources is paramount, and assistive listening devices (ALDs) can dramatically improve quality of life. These devices, ranging from simple amplifiers to sophisticated digital systems, help individuals with hearing impairments better participate in daily activities. The question of whether a special needs trust (SNT) can cover the cost of these devices is a common one, and the answer is generally yes, with specific considerations. SNTs are designed to supplement, not replace, government benefits like Supplemental Security Income (SSI) and Medicaid, and properly structured, funds can be used for a wide range of needs, including ALDs. It’s crucial to understand the trust’s terms and adhere to Medicaid rules to avoid jeopardizing eligibility. Approximately 1 in 5 adults in the U.S. experiences some degree of hearing loss, highlighting the significant potential benefit of these devices for many SNT beneficiaries.
What expenses *can* a special needs trust cover?
A special needs trust is a powerful tool, but it’s governed by strict rules. Generally, SNTs can pay for items and services that enhance the beneficiary’s quality of life *beyond* what Medicaid already provides. This includes things like therapies, recreational activities, uncompensated medical expenses, and yes, assistive listening devices. The key is that the purchase of an ALD shouldn’t be considered a source of income for the beneficiary, which could disqualify them from needs-based benefits. “A well-drafted SNT acts as a safety net, allowing for a better quality of life without sacrificing essential government assistance,” notes estate planning attorney Steve Bliss of San Diego. In 2023, the national average cost of a hearing aid ranged from $2,300 to $7,000 *per ear*, so covering these costs through an SNT can be incredibly impactful.
Can using trust funds affect government benefits?
This is where things get nuanced. Simply having funds in an SNT *doesn’t* automatically disqualify someone from SSI or Medicaid. However, *how* those funds are used matters greatly. If the trust directly pays for something Medicaid *already* covers, it could be seen as a duplication of benefits and jeopardize eligibility. But if the trust pays for ALDs that are *not* covered, or upgrades the quality of devices beyond what Medicaid provides, it’s generally permissible. Imagine Mrs. Gable, a dedicated grandmother, set up a trust for her grandson, David, who has autism and struggles with auditory processing. She feared he was missing out on essential interactions. She initially tried to use trust funds for basic hearing aids that Medicaid *would* have covered, unaware of the potential consequences, and almost lost his Medicaid benefits.
What happened when things went wrong for the Gable family?
The initial attempt to fund David’s hearing aids through the SNT flagged an issue with Medicaid. The case worker deemed the purchase a duplicate benefit, threatening to suspend David’s coverage. Mrs. Gable was distraught, believing her good intentions had backfired. She’d diligently saved for years, wanting to ensure David had the tools he needed to thrive. Fortunately, she immediately contacted Steve Bliss. He explained that the trust could be used for supplemental devices or to upgrade existing aids beyond what Medicaid would offer. Steve quickly guided her through the proper documentation process, demonstrating that the funds would be used for an advanced ALD system, significantly improving David’s ability to participate in school and therapy. A careful review revealed that the original intent of the trust was permissible, but that the initial application was improperly filed.
How did proper planning make everything better?
After a minor adjustment to the trust documentation, Mrs. Gable successfully purchased a sophisticated ALD system for David. The system included noise-canceling headphones and a digital amplifier, allowing him to focus in noisy classrooms and participate more fully in social interactions. It wasn’t just about hearing better; it was about building confidence and fostering independence. David’s teacher reported a marked improvement in his engagement and academic performance. This experience highlighted the importance of working with an experienced estate planning attorney who understands the intricacies of special needs trusts and Medicaid regulations. “We often see families unintentionally jeopardize benefits by not understanding the rules,” explains Steve Bliss. “Proactive planning is key to maximizing the benefits of an SNT while protecting essential government assistance.” By understanding the guidelines and seeking expert advice, families can ensure that their loved ones receive the support they deserve.
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About Steve Bliss Esq. at The Law Firm of Steven F. Bliss Esq.:
The Law Firm of Steven F. Bliss Esq. is Temecula Probate Law. The Law Firm Of Steven F. Bliss Esq. is a Temecula Estate Planning Attorney. Steve Bliss is an experienced probate attorney. Steve Bliss is an Estate Planning Lawyer. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Steve Bliss Law. Our probate attorney will probate the estate. Attorney probate at Steve Bliss Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Steve Bliss Law will petition to open probate for you. Don’t go through a costly probate. Call Steve Bliss Law Today for estate planning, trusts and probate.
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
living trust
revocable living trust
family trust
wills
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Map To Steve Bliss Law in Temecula:
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Address:
The Law Firm of Steven F. Bliss Esq.43920 Margarita Rd ste f, Temecula, CA 92592
(951) 223-7000
Feel free to ask Attorney Steve Bliss about: “What estate planning steps should I take if I own a small business?”
Or “Can I challenge a will during probate?”
or “How is a living trust different from a will?
or even: “How long does bankruptcy stay on my credit report?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.