The question of whether a special needs trust (SNT) can fund a website dedicated to disability education is complex, but generally, yes, with careful planning and adherence to the trust’s terms and relevant regulations. SNTs are designed to provide for the supplemental needs of individuals with disabilities without disqualifying them from means-tested public benefits like Supplemental Security Income (SSI) and Medicaid. Funding a website falls into the category of “supplemental needs” if it demonstrably benefits the beneficiary *beyond* what government programs provide, and does not jeopardize their eligibility for those programs. Approximately 61 million adults in the United States live with a disability, representing 26% of the adult population, and access to reliable, accessible education is a critical, yet often unmet, need within this community.
What Expenses Can a Special Needs Trust Cover?
Typically, SNTs can cover a wide range of expenses that enhance the quality of life for the beneficiary. These often include medical expenses not covered by insurance, therapies, recreation, travel, and educational opportunities. A website focusing on disability education *could* be considered an educational opportunity, but the key is demonstrating how it supplements, rather than replaces, existing resources. The trust document must explicitly allow for such expenditures. It’s also vital that any income generated by the website (through advertising, donations, or other means) is carefully managed to avoid exceeding SSI income limits—currently around $2,000 per month in 2024. Many beneficiaries rely on these programs for basic needs, so preserving eligibility is paramount.
How Do I Ensure Compliance with Government Benefits?
Navigating the rules surrounding SNTs and government benefits can be daunting. The first step is a clear and comprehensive trust document drafted by an experienced estate planning attorney, like Ted Cook here in San Diego. The document should specifically address the possibility of funding educational initiatives, like a website, and outline the parameters for doing so. It’s essential to understand that the beneficiary *cannot* actively work on the website or receive direct financial benefit from it, as this could be considered unearned income and jeopardize their benefits. The trust itself would own and operate the website, and any income generated would need to be managed according to the trust’s terms, potentially through a pooled trust arrangement or a carefully monitored individual trust account.
I Remember Old Man Hemmings…
I recall a case several years ago where a well-intentioned family attempted a similar project without proper legal guidance. Old Man Hemmings, a wonderful man with cerebral palsy, had a small inheritance. His family wanted to create a website sharing information about adaptive technology. They started building it, and Mr. Hemmings excitedly contributed content. Unfortunately, because he was directly involved and the website wasn’t properly structured through a trust, SSI determined he was “working” and reduced his benefits significantly. It was a heartbreaking situation – they had acted with the best of intentions, but lacked the crucial legal framework to protect his eligibility. This is a prime example of why proper planning is so important—a seemingly helpful act can inadvertently cause harm.
But With Careful Planning, Everything Can Work Out
Fortunately, we recently helped the Miller family successfully launch a disability education website funded by their daughter Sarah’s SNT. Sarah, who has Down syndrome, is passionate about advocating for others. We structured the trust to own the website entirely, with a designated trustee managing all aspects of its operation. A team of professionals creates and maintains the content, and Sarah provides input through her support network, but has no direct involvement in the technical or financial side. The website is thriving, providing valuable resources to families across the state, and Sarah’s benefits remain secure. It’s a shining example of how, with careful planning and expert legal guidance, a special needs trust can be a powerful tool for empowerment and education. As Ted Cook always says, “It’s not just about protecting assets; it’s about enhancing lives.”
“A well-structured special needs trust can truly be a vehicle for positive change, allowing beneficiaries to pursue their passions and contribute to the community without sacrificing their essential support.”
Who Is Ted Cook at Point Loma Estate Planning Law, APC.:
Point Loma Estate Planning Law, APC.2305 Historic Decatur Rd Suite 100, San Diego CA. 92106
(619) 550-7437
Map To Point Loma Estate Planning Law, APC, a wills and trust lawyer near me: https://maps.app.goo.gl/JiHkjNg9VFGA44tf9
| estate planning attorney near me | wills and trust lawyer | wills attorney |
| conservatorship | estate planning attorney near me | estate planning lawyer |
| living trust attorney | estate planning lawyer | revocable estate planning attorney near me |
About Point Loma Estate Planning:
Secure Your Legacy, Safeguard Your Loved Ones. Point Loma Estate Planning Law, APC.
Feeling overwhelmed by estate planning? You’re not alone. With 27 years of proven experience – crafting over 25,000 personalized plans and trusts – we transform complexity into clarity.
Our Areas of Focus:
Legacy Protection: (minimizing taxes, maximizing asset preservation).
Crafting Living Trusts: (administration and litigation).
Elder Care & Tax Strategy: Avoid family discord and costly errors.
Discover peace of mind with our compassionate guidance.
Claim your exclusive 30-minute consultation today!
If you have any questions about: How can an irrevocable trust prevent family disputes and ensure smooth asset distribution?
OR
Can a charitable trust provide financial benefits to beneficiaries while supporting charities?
and or:
What is the typical order of priority for paying debts in estate planning?
Oh and please consider:
How do beneficiary designations impact asset transfer?
Please Call or visit the address above. Thank you.