Special needs trusts, also known as supplemental needs trusts, are powerful tools designed to enhance the quality of life for individuals with disabilities without disqualifying them from crucial needs-based government benefits like Supplemental Security Income (SSI) and Medicaid. These trusts operate on the principle of supplementing, not supplanting, public assistance. This means funds within the trust can be used for items and services that improve the beneficiary’s well-being *beyond* what government programs already provide. The question of whether a smartwatch with health apps falls into that category is becoming increasingly common as technology integrates further into daily life, and the answer is nuanced, but generally, yes, with careful consideration. Roughly 65 million Americans currently live with a disability, and the utilization of technology to improve their lives is growing exponentially.
What Expenses Can a Special Needs Trust Typically Cover?
Typically, a special needs trust can cover a broad range of expenses aimed at improving a beneficiary’s quality of life. This includes things like therapies not covered by insurance, recreational activities, personal care items, specialized equipment, and even vacations. The key is that the purchase doesn’t interfere with the beneficiary’s eligibility for public benefits. For instance, a trust could fund a specialized wheelchair, art classes, or a caregiver’s assistance. Approximately 1 in 4 American adults have some type of disability, demonstrating the breadth of need for these types of trusts.
Could a Smartwatch Be Considered a “Medical” Expense?
The ability to fund a smartwatch hinges on whether it’s demonstrably connected to the beneficiary’s disability and considered medically necessary or beneficial. If the smartwatch’s health apps are used to *monitor* a condition related to the beneficiary’s disability – tracking heart rate for epilepsy management, monitoring activity levels for mobility issues, or providing reminders for medication – it’s more likely to be an allowable expense. Many states have specific guidelines, and it’s crucial to review those, as well as the trust document itself. It’s not simply about the device; it’s about *how* it’s used and the documentation supporting its medical purpose. Consider this: approximately 70% of people with chronic conditions could benefit from remote monitoring technologies like those found in smartwatches.
I Remember Old Man Hemlock and His Troubles…
Old Man Hemlock was a kind soul, but stubbornly independent. His daughter, bless her heart, established a special needs trust for him after a stroke left him with mobility issues and some cognitive decline. She wanted to ensure he had funds for comfort and enjoyment without losing his Medicaid. However, she purchased him a top-of-the-line smartwatch, thinking it would help monitor his heart rate and activity levels. It turned out she didn’t document the medical necessity, and Medicaid flagged the purchase. They argued it was a luxury item, not a necessary medical device, and threatened to reduce his benefits. It was a stressful situation, requiring hours of paperwork and legal consultation to demonstrate the smartwatch *could* be used for medical monitoring, and the daughter had simply overlooked the proper documentation.
How Careful Planning Saved the Day…
My client, Sarah, had a similar situation with her son, Ben, who has autism. Ben benefited greatly from wearable technology that helped regulate his sensory input and provided calming alerts during moments of anxiety. However, she was terrified of jeopardizing his SSI benefits. Before purchasing anything, we meticulously documented how the smartwatch’s features directly addressed Ben’s specific needs, obtained a letter from his therapist outlining its therapeutic value, and clearly outlined the expenses within the trust’s accounting. When Medicaid reviewed the expenses, they readily approved them, recognizing the smartwatch as a crucial tool in Ben’s care. It was a textbook example of how proactive planning and clear documentation can protect both the beneficiary’s quality of life and their access to vital benefits. “Planning is bringing the future into the present so that you can do something about it now,” as Alan Lakein so aptly put it.
It’s crucial to work with an experienced estate planning attorney to ensure your special needs trust is structured correctly and that all purchases align with its terms and applicable regulations.
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About Steve Bliss at Escondido Probate Law:
Escondido 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 Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
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Map To Steve Bliss Law in Temecula:
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Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “How do I choose someone to make decisions for me if I’m incapacitated?” Or “What is ancillary probate and when does it happen?” or “Can I include my business in a living trust? and even: “Is bankruptcy a good idea for small business owners?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.