Absolutely, a special needs trust *can* support video production for public awareness, but it requires careful consideration and adherence to specific guidelines to ensure it doesn’t jeopardize the beneficiary’s public benefits eligibility, particularly Supplemental Security Income (SSI) and Medicaid. These trusts, also known as (SNTs), are designed to improve the quality of life for individuals with disabilities without disqualifying them from crucial government assistance programs. The key lies in structuring the expenditure as benefiting the beneficiary directly, or falling under allowable exceptions, rather than appearing as a distribution that could be considered income or a resource impacting eligibility. Approximately 6.5 million Americans rely on SSI, and maintaining eligibility is paramount for many families establishing SNTs.
What expenses *can* a special needs trust typically cover?
Traditionally, SNTs cover essential needs like medical expenses, therapies, specialized equipment, education, recreation, and personal care. However, the scope is broader than many realize. Allowable expenses aren’t limited to “necessities”; they can include activities that enhance the beneficiary’s well-being and quality of life. For example, funding art classes, music lessons, or travel can be permissible if these activities are considered therapeutic or contribute to the beneficiary’s personal growth. The crucial element is demonstrating that the expenditure is for the benefit of the beneficiary and aligns with the trust’s purpose. Approximately 26% of adults in the US have some type of disability, highlighting the importance of tools like SNTs for improving their lives.
Could video production be considered a “therapy” or “enhancement”?
This is where it gets interesting. Video production, if structured correctly, *can* fall under allowable expenses. If the videos document the beneficiary’s journey, skills development, or creative expression, it could be argued as a form of therapeutic activity or a way to enhance their communication skills and self-esteem. The videos could showcase the beneficiary’s talents, raise awareness about their disability, or even advocate for disability rights. However, it’s essential to avoid any appearance of commercial gain or creating content solely for public distribution without a clear connection to the beneficiary’s benefit. It’s important to document the therapeutic goals and how the video production process supports them. “We’ve seen a rise in families utilizing SNT funds for creative pursuits, recognizing the immense benefits they offer in terms of emotional well-being and personal growth,” says Steve Bliss, an Estate Planning Attorney in Wildomar, specializing in SNTs.
What happened when the Johnson family tried to fund a documentary without proper planning?
The Johnson family, eager to share their son Ethan’s story with autism, enthusiastically began funding a documentary about his life through his SNT. They envisioned a powerful film to raise awareness about autism and inspire others. Unfortunately, they didn’t consult with their attorney or carefully consider how the expenses would be viewed by Medicaid. When the film started gaining traction and attracting potential sponsors, Medicaid questioned the expenditure, arguing that it looked like a commercial venture. The agency threatened to reduce Ethan’s benefits, claiming the funds were being used for something other than his direct benefit. The family panicked, realizing they had overlooked a crucial step. They spent months scrambling to provide documentation and demonstrate that the primary purpose of the film was to showcase Ethan’s personal journey and artistic talents, not to generate profit. The stress and uncertainty were immense, and they narrowly avoided a benefit reduction.
How did the Ramirez family successfully fund a video project with their SNT?
The Ramirez family, having learned from others’ experiences, approached their video project with careful planning. Their daughter, Sofia, had cerebral palsy and was a gifted painter. They wanted to create a short video showcasing her artwork and creative process, to share with family and friends and potentially exhibit at local galleries. They worked closely with Steve Bliss to structure the funding as a therapeutic activity, emphasizing how the video production process would enhance Sofia’s self-expression, communication skills, and confidence. They documented Sofia’s goals, her participation in the project, and the therapeutic benefits she derived from it. They ensured the video was primarily intended for personal use and limited public distribution. Medicaid reviewed the documentation and approved the expenditure, recognizing the clear connection to Sofia’s well-being. The video project became a source of immense pride for Sofia and her family, and she successfully exhibited her artwork at a local gallery, boosting her confidence and sense of accomplishment. This demonstrates that with careful planning and legal guidance, SNT funds can be used to support enriching activities that improve the quality of life for individuals with disabilities.
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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
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Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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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 best way to leave money to minor children?” Or “What is ancillary probate and when does it happen?” or “Can a trust be challenged or contested like a will? and even: “What property is considered exempt in bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.