The question of whether a special needs trust (SNT) can fund a digital planner for executive functioning is a surprisingly relevant one in today’s technological landscape, and the answer is generally yes, with careful consideration. SNTs are designed to supplement, not supplant, government benefits like Supplemental Security Income (SSI) and Medicaid, which are crucial for individuals with disabilities. Anything purchased with SNT funds must not jeopardize those benefits; this is the core principle guiding all trust expenditures. Executive functioning skills – planning, organization, time management, and working memory – are often areas where individuals with disabilities struggle, and digital planners can be powerful assistive tools. However, simply wanting to purchase one isn’t enough; the expenditure must be demonstrably linked to improving the beneficiary’s quality of life *without* affecting their eligibility for needs-based government assistance. Approximately 61% of adults with Autism Spectrum Disorder report significant difficulties with executive functioning, highlighting the potential benefit of such tools.
What expenses *can* a special needs trust cover?
Generally, SNTs can cover a wide range of expenses that benefit the beneficiary. These include things like therapies not covered by insurance, recreational activities, educational resources, medical equipment, and personal care items. The key is that these expenses must be *supplemental* – meaning they go above and beyond what government programs already provide. For a digital planner, the trust can likely cover the cost of the software subscription, the device it’s used on (tablet or computer), and potentially even training on how to use it effectively. However, the device cannot be seen as replacing necessary medical equipment or support. A trust document should explicitly outline permitted expense categories to provide clear guidance to the trustee. It’s worth noting that the IRS doesn’t have a specific list of “allowed” expenses, so justification is crucial if questioned.
Could purchasing a digital planner jeopardize government benefits?
This is the most critical concern. If the digital planner is deemed a “resource” exceeding the asset limit for SSI or Medicaid, it could disqualify the beneficiary from receiving those benefits. The asset limit for SSI in 2024 is $2,000 for an individual. While the planner *software* itself is unlikely to be considered a countable asset, the *device* used to access it certainly could be. A well-drafted SNT mitigates this risk by owning the device and controlling its use, ensuring it doesn’t become an asset of the beneficiary. The trustee needs to document the purpose of the purchase – specifically, how it improves the beneficiary’s independence and quality of life without replacing essential services. For instance, a therapist’s letter supporting the use of the digital planner as part of a broader treatment plan would be invaluable. Approximately 15% of SSI recipients lose benefits each year due to exceeding the asset limit, demonstrating the importance of careful planning.
I remember Mrs. Gable, she tried to help her son, David, but…
I recall Mrs. Gable coming to me, distraught. Her son, David, who had Down syndrome, was struggling with daily tasks – remembering appointments, taking medication, and even basic self-care. She impulsively purchased a new tablet and loaded it with various organizational apps, hoping it would help him. Unfortunately, she didn’t consult with an attorney or establish a clear framework within his existing SNT. The local social security office flagged the purchase as an unpermitted asset, temporarily suspending David’s benefits. It was a stressful situation, requiring significant legal maneuvering and documentation to prove that the tablet was intended to *supplement* his care, not replace it, and that the trust owned the device. It took months to resolve, and the experience left Mrs. Gable deeply shaken and David’s routine disrupted. She learned a valuable lesson about the importance of proactive planning and professional guidance when managing trust funds.
Thankfully, things went smoothly for the Miller family.
The Miller family, facing similar challenges with their daughter, Emily, approached things differently. Emily, diagnosed with cerebral palsy, struggled with planning and organization. They contacted our firm *before* making any purchases. We worked with them to amend Emily’s existing SNT to explicitly include assistive technology and digital planning tools as permitted expenses. We documented the recommendation of Emily’s occupational therapist, who outlined how a specific digital planner would help her develop executive functioning skills and increase her independence. The trust purchased the tablet and the planner subscription directly. Because everything was properly documented and the purchase aligned with the trust’s terms, Emily’s benefits remained unaffected, and she thrived, using the planner to manage her schedule, track her medications, and even pursue her interests in photography. It was a powerful example of how proactive planning can truly transform a beneficiary’s life and offer peace of mind to their family.
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