{"id":1901,"date":"2021-04-21T23:18:26","date_gmt":"2021-04-21T23:18:26","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/?p=1901"},"modified":"2024-09-27T22:31:20","modified_gmt":"2024-09-27T22:31:20","slug":"expenses-paid-from-special-needs-trust","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/blog\/expenses-paid-from-special-needs-trust\/","title":{"rendered":"What Expenses Can Be Paid From A Special Needs Trust?"},"content":{"rendered":"

Special Needs Trusts are valuable tools used to assist individuals with special needs to pay for everyday expenses that are not covered by any government benefits programs. But, the funds in the trusts must be used correctly, or else the individual with special needs is in danger of having their benefits reduced or taken away.<\/p>\n

What is a Special Needs Trust?<\/h2>\n

Many individuals with special needs qualify for government benefits such as Medicaid and supplemental security income (SSI<\/a>), which can help them pay for various costs. While the benefits they receive will help them pay for many of their day-to-day living expenses, the funds are not enough to cover all of their living costs.<\/p>\n

When the benefits are not enough to cover an individual\u2019s costs, it is wise for their family to create a Special Needs Trust for them to use. A Special Needs Trust, also referred to as a Supplemental Needs Trust, is a trust<\/a> used to provide supplemental benefits to individuals with disabilities without disqualifying them from receiving government benefits. For example, if the government benefits do not cover costs such as cell-phone or wifi bill, funds from a Special Needs Trust may be used to assist your loved one in paying these bills.<\/p>\n

Common Expenses A Special Needs Trust Covers<\/h2>\n

These government benefit programs are highly selective, and the government will disqualify a person with special needs for a litany of reasons. For instance, a qualifying individual with special needs is required to have minimal amounts of cash, money in savings accounts, and their home must be below a specific price point.<\/p>\n

If the individual has more than the maximum amount of money allowed or they are improperly using money they receive from a Special Needs Trust, they will be stripped of their benefits. The following are a few of the most common expenses that a Special Needs Trust can be used to pay for:<\/p>\n