The question of whether a special needs trust (SNT) can fund educational supplies for remote learning is a common one, particularly in recent years as distance learning became prevalent. The answer is generally yes, but with important considerations and limitations governed by Supplemental Security Income (SSI) rules and the specifics of the trust document. SNTs are designed to supplement, not supplant, government benefits, and the IRS has specific guidelines regarding permissible distributions. While covering basic needs like housing and food is typical, funding educational resources falls into a gray area that requires careful navigation. Approximately 1 in 5 children in the United States have learning disabilities, and for those receiving SSI, maintaining eligibility while providing enriching educational experiences is crucial.
What are the SSI rules regarding educational expenses?
Supplemental Security Income (SSI) is a needs-based program, meaning benefits are reduced or terminated if the recipient has income or resources exceeding certain limits. The SSI program does allow for certain exclusions from income calculations, including those related to education. However, these exclusions typically apply to formal education programs leading to a degree or certificate. Educational supplies for remote learning, such as computers, internet access, software, and specialized learning tools, are not always automatically considered “educational expenses” in the same way. In 2023, roughly 6.4 million people received SSI benefits, many of whom are children with disabilities. The key is demonstrating that these expenses are medically necessary and directly related to the beneficiary’s disability, or are considered “supports” to help them benefit from the education.
How does a special needs trust impact eligibility for government benefits?
A properly structured special needs trust can allow a beneficiary to receive distributions to enhance their quality of life without jeopardizing their eligibility for needs-based government benefits like SSI and Medicaid. There are two main types of SNTs: first-party (or self-settled) trusts, funded with the beneficiary’s own assets, and third-party trusts, funded by someone else (like parents or grandparents). Third-party trusts generally offer more flexibility in terms of distributions. Funds distributed from the trust for allowable expenses, such as educational supplies for remote learning, are typically excluded from the beneficiary’s income when determining SSI eligibility. It’s important to remember that the trust document itself dictates what can be paid for. A well-drafted trust will specifically address educational needs, including provisions for remote learning resources.
I remember Mrs. Davison, a kind woman with a son named Ethan who had Down syndrome. She’d diligently saved for his future, establishing a third-party special needs trust. When the pandemic hit, Ethan’s day program closed, and remote learning became the only option. Mrs. Davison, understandably, wanted to provide him with a tablet and internet access. Initially, she worried it would disqualify him from SSI. She contacted a local attorney, and they reviewed the trust document. Unfortunately, the trust hadn’t specifically addressed technology for remote learning. They had to petition the Social Security Administration (SSA) for a determination. It took months, and Ethan missed valuable learning time. The SSA ultimately approved the expense, but the delay highlighted the importance of proactive planning. Had the trust been more specific, the transition to remote learning would have been seamless.
Thankfully, my client, Mr. Garcia, learned from Mrs. Davison’s experience. His daughter, Sophia, has autism and benefits greatly from specialized software and online therapy. When we established Sophia’s special needs trust, we explicitly included provisions for “assistive technology and educational resources, including but not limited to computers, internet access, software, and online learning platforms.” When the school district shifted to remote learning, Mr. Garcia was able to immediately purchase the necessary equipment and services without fearing a disruption in Sophia’s benefits. He shared, “Knowing we had that clear language in the trust gave us so much peace of mind. It allowed Sophia to continue learning and thriving, even during a challenging time.” It was a beautiful example of how proactive planning can truly make a difference in a child’s life.
Ultimately, funding educational supplies for remote learning from a special needs trust is possible, but requires careful consideration of SSI rules, the trust document’s language, and ideally, consultation with an estate planning attorney specializing in special needs trusts. A well-drafted trust, proactively addressing the possibility of remote learning and assistive technology, can provide the beneficiary with the resources they need to succeed without jeopardizing their crucial government benefits. Approximately 7.1 million students with disabilities received special education services in 2021-2022, so this is a pressing issue for many families.
<\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
- pet trust
- wills
- family trust
- estate planning attorney near me
- living trust
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 is probate and how can I avoid it?” Or “What is an executor and what do they do during probate?” or “Can I include special instructions in my living trust? 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.