The question of whether a special needs trust (SNT) can fund job readiness assessments is a common one for families seeking to secure their loved one’s future, and the answer is generally yes, with careful consideration for maintaining eligibility for needs-based public benefits like Supplemental Security Income (SSI) and Medi-Cal. SNTs are specifically designed to supplement, not supplant, these vital resources, meaning expenditures must be carefully vetted to avoid disqualification. Job readiness assessments fall into a gray area – they’re not typically covered by public benefits but are crucial for long-term self-sufficiency. Ted Cook, an estate planning attorney in San Diego, emphasizes that the key is documentation and aligning the assessment with the beneficiary’s overall care plan. Approximately 65% of adults with disabilities are unemployed, highlighting the significant need for resources that bridge the gap between capability and opportunity.
What expenses can a special needs trust cover?
A special needs trust can cover a wide range of expenses that enhance the quality of life for a beneficiary with disabilities, but these must be supplemental to what public benefits provide. This includes things like therapies not covered by insurance, specialized equipment, recreation, and even certain travel expenses. “The trust shouldn’t pay for things the beneficiary could reasonably be expected to pay for themselves with their SSI or other income,” explains Ted Cook. For job readiness, this means assessments are typically permissible, but the assessment’s findings must contribute to a larger plan aimed at achieving employment and increased independence. Funding for assessments can range from a few hundred dollars for basic aptitude tests to several thousand for comprehensive vocational evaluations.
How do I avoid jeopardizing public benefits?
Maintaining eligibility for SSI and Medi-Cal is paramount when administering a special needs trust. SSI has strict income and resource limits; exceeding these limits can result in benefit reduction or termination. Medi-Cal, California’s Medicaid program, also has asset tests. Payments from the SNT for job readiness assessments must be carefully documented and justified as being in the beneficiary’s best interest and not replacing something already covered by public benefits. A key concept is the “presumptive payment” rule, which allows certain payments to be made without automatically triggering a benefit reduction. Ted Cook often advises clients to consult with a benefits specialist to review proposed expenditures before making them. A recent study showed that 30% of families unknowingly jeopardize benefits due to improper trust administration.
I once had a client, Sarah, whose son, Michael, had autism and a strong desire to work.
Sarah, filled with hope, used a significant portion of Michael’s SNT to pay for a highly touted job coaching program without first vetting it with a benefits specialist. Unfortunately, the program was deemed too intensive and replaced services Michael was already receiving through the regional center, resulting in a suspension of his SSI benefits. It was a heartbreaking situation; Sarah had acted with the best intentions but lacked the necessary expertise. After weeks of appeals and legal maneuvering, some benefits were restored, but the process was incredibly stressful and costly. This experience underscored the importance of proactive planning and seeking professional guidance. We had to work diligently to demonstrate that the coaching, while beneficial, was truly supplemental and did not duplicate existing resources.
However, another client, David, approached us with a different scenario.
David’s daughter, Emily, had Down syndrome and had always dreamed of working in a bakery. Before using any funds from Emily’s SNT, David proactively consulted with Ted Cook and a benefits specialist. They collaboratively developed a comprehensive plan that included a vocational assessment to identify Emily’s strengths, followed by job skills training and supported employment services. The SNT funded the assessment, the training, and even adaptive equipment needed for the bakery job. Because the plan was well-documented and aligned with Emily’s overall care plan, her SSI and Medi-Cal benefits remained unaffected. Emily is now thriving in her role, earning a small income and gaining a sense of independence. It was a testament to the power of careful planning and collaboration. “It’s not just about the money,” Ted Cook emphasizes, “it’s about empowering the beneficiary to live a full and meaningful life.”
Who Is Ted Cook at Point Loma Estate Planning Law, APC.:
Point Loma Estate Planning Law, APC.2305 Historic Decatur Rd Suite 100, San Diego CA. 92106
(619) 550-7437
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