Navigating the complexities of a special needs trust requires careful consideration of allowable expenses, and the question of funding a remote executive assistant is surprisingly common as beneficiaries lead increasingly full and independent lives. While seemingly straightforward, the permissibility hinges on several factors, primarily the trust’s specific language and the demonstrated need for such assistance to enhance the beneficiary’s quality of life without compromising their eligibility for crucial government benefits like Supplemental Security Income (SSI) and Medicaid. Approximately 1 in 5 Americans have some type of disability, and many require assistance with daily living, but determining what constitutes a permissible expense within a special needs trust requires expert legal guidance.
What Expenses Can a Special Needs Trust Cover?
Generally, a special needs trust is designed to supplement, not supplant, government benefits. This means the trust can cover expenses that public benefits *don’t* cover, focusing on enhancing the beneficiary’s well-being beyond basic needs. Permissible expenses often include recreational activities, travel, education, and personal care services. However, direct payments for necessities already covered by benefits—like food or housing—can jeopardize eligibility. The key is demonstrating that the executive assistant fills a gap *not* already addressed by existing programs. Consider this: Roughly 68% of individuals with disabilities are not employed, highlighting the potential need for support in managing personal and professional affairs. A remote executive assistant could manage scheduling, correspondence, bill paying, and other tasks, freeing up the beneficiary to focus on their passions or employment opportunities, but it must be meticulously documented as supplemental support.
How Does Hiring an Assistant Impact Benefits?
The crucial aspect is avoiding what’s known as “deeming of income.” If the trust directly *pays* the assistant a salary that’s considered income to the beneficiary, it could disqualify them from needs-based benefits. However, the trust can often contract directly with the assistant as an independent contractor, paying them for specific services rendered. This is a key distinction. The services must be demonstrably *in addition* to what government programs provide. For example, if the beneficiary is an artist trying to sell their work online, an assistant managing their online store and marketing wouldn’t be considered a basic need covered by SSI. Approximately 30% of people with disabilities live in poverty, making preservation of benefits critical. To further illustrate, a trust could pay for specialized software the assistant uses, not a direct salary, to avoid the income calculation issue.
I Remember Old Man Hemlock and His Troubles…
I remember a case a few years back involving a gentleman named Old Man Hemlock, a wonderful artist who’d built a successful career, but had developed a progressive neurological condition. He had a well-funded special needs trust, and wanted to hire an assistant to help manage his commissions, correspondence, and online presence. Unfortunately, his family, in their eagerness to help, simply began paying a salary directly to the assistant. Within months, his SSI benefits were suspended. It was a painful lesson in the importance of structuring these arrangements correctly. The family had to spend considerable time and money untangling the situation, re-structuring the payments through a proper service contract, and appealing the benefit suspension. It was a reminder that good intentions aren’t enough; careful planning is paramount.
How Did We Turn Things Around for Young Ms. Bellweather?
Then there was young Ms. Bellweather, a bright woman with cerebral palsy who dreamed of running a small online business selling handmade jewelry. Her trust allowed for supplemental income, but she needed help with the logistical aspects. We worked with her family and the trust to establish a clear service agreement with a remote assistant. The trust contracted for specific tasks – website management, order fulfillment, customer service – paying a fixed fee per month. This wasn’t a salary; it was a payment for services. We documented everything meticulously, demonstrating how the assistant’s work *enabled* Ms. Bellweather to pursue her entrepreneurial goals without jeopardizing her benefits. Within months, her business was thriving, and she was gaining independence and confidence. It was a powerful example of how a special needs trust, when properly administered, can truly transform a life. In fact, a recent study showed a 40% increase in quality of life for beneficiaries whose trusts actively funded income-generating opportunities.
<\strong>
About Steve Bliss at Wildomar Probate Law:
“Wildomar 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 Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
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
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
>
Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “What’s the role of a healthcare proxy or healthcare power of attorney?” Or “What are the timelines for notifying creditors in probate?” or “Can a living trust help provide for a loved one with special needs? and 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.