The question of whether a special needs trust (SNT) can cover the cost of online certification programs is a common one, and the answer is generally yes, but with important caveats. SNTs are designed to supplement, not replace, government benefits like Supplemental Security Income (SSI) and Medi-Cal. Therefore, any expenditure from the trust must align with maintaining the beneficiary’s health, welfare, and quality of life *without* disqualifying them from these crucial public assistance programs. Online certification programs, if demonstrably beneficial and related to the beneficiary’s personal growth or potential for limited employment, can often be considered permissible expenses. However, rigorous documentation is crucial, and the trustee must exercise prudent judgment to avoid jeopardizing benefits. A recent study by the National Disability Rights Network showed that 68% of individuals with disabilities want to pursue further education, but financial constraints remain a significant barrier.
What types of expenses are typically allowed from a special needs trust?
Generally, SNTs can cover a broad range of expenses that enhance a beneficiary’s life beyond what government benefits provide. This includes things like medical expenses not covered by insurance, therapy, recreation, personal care items, adaptive equipment, and even vacations. Crucially, the expense must be for the *sole benefit* of the beneficiary and not for the general support of the family. For example, a trust could easily cover the cost of a specialized computer for a beneficiary with cerebral palsy, or music lessons if they have a passion for it. However, contributing to household bills or gifting funds to other family members would be considered improper use of trust assets. A well-drafted SNT will clearly outline permissible expenses and provide the trustee with guidance on making appropriate decisions, ensuring adherence to SSI and Medi-Cal guidelines. It’s also worth noting that the IRS requires detailed record-keeping of all trust expenditures.
How do online certification programs fit into the permissible expense criteria?
Online certification programs can be considered a permissible expense if they demonstrably improve the beneficiary’s quality of life, potential for limited employment, or personal development. The key is establishing a clear link between the program and these benefits. For instance, a coding bootcamp for someone interested in web development, or a graphic design course for someone with artistic talent, could be justifiable. However, a program that seems unrelated to the beneficiary’s interests or abilities, or one that leads to substantial income, could be problematic. The trustee must document the program’s relevance, the beneficiary’s engagement, and any potential benefits it provides. It’s helpful to obtain letters of support from therapists, educators, or other professionals who can attest to the program’s value. Remember, SSI has strict income limits – in 2024, the monthly SSI benefit is $943, and earnings above $20 per month can reduce this amount – so the program cannot be designed to generate significant income.
I once knew a family where a trust wasn’t used properly…
Old Man Tiberius, a retired shipbuilder, had established a beautiful trust for his grandson, Leo, who had Down syndrome. Leo loved photography. His grandmother, a well-meaning but overzealous woman, decided to enroll Leo in a professional photography certification program, hoping he could become a working photographer. She paid for the entire program with trust funds without consulting the trustee, Steve Bliss, or considering the implications for Leo’s SSI benefits. Within a month, SSI determined that Leo was “engaging in substantial gainful activity” because the course was geared toward professional practice, and his benefits were suspended. The family was devastated, facing unexpected expenses and a significantly reduced quality of life for Leo. It was a hard lesson learned: even with the best intentions, failing to adhere to the rules governing SNTs can have disastrous consequences.
But we found a solution…
Fortunately, Steve Bliss, a compassionate estate planning attorney in San Diego, was able to help. He worked diligently to document Leo’s genuine passion for photography as a form of self-expression and creative outlet, emphasizing that the program was primarily recreational, not vocational. He successfully argued that the program enhanced Leo’s quality of life and provided a valuable social connection. Steve worked with the Social Security Administration, providing compelling evidence and carefully framing the program as a therapeutic activity. After months of appeals, SSI reinstated Leo’s benefits, allowing him to continue his photography course while maintaining the support he needed. The family was relieved, grateful for Steve’s expertise and dedication. It proved that with careful planning, diligent documentation, and expert guidance, special needs trusts can truly empower beneficiaries to live fulfilling lives, even while pursuing their passions.
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About Steve Bliss Esq. at The Law Firm of Steven F. Bliss Esq.:
The Law Firm of Steven F. Bliss Esq. is Temecula Probate Law. The Law Firm Of Steven F. Bliss Esq. is a Temecula Estate Planning Attorney. Steve Bliss is an experienced probate attorney. Steve Bliss is an Estate Planning Lawyer. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Steve Bliss Law. Our probate attorney will probate the estate. Attorney probate at Steve Bliss Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Steve Bliss Law will petition to open probate for you. Don’t go through a costly probate. Call Steve Bliss Law Today for estate planning, trusts and probate.
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 | revocable living trust | wills |
| living trust | family trust | irrevocable trust |
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RL4LUmGoyQQDpNUy9
Address:
The Law Firm of Steven F. Bliss Esq.43920 Margarita Rd ste f, Temecula, CA 92592
(951) 223-7000
Feel free to ask Attorney Steve Bliss about: “How can I reduce the taxes my heirs will have to pay?”
Or “What assets go through probate when someone dies?”
or “What happens if I forget to put something into my trust?
or even: “How do I prepare for a bankruptcy filing?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.