Absolutely, a special needs trust can indeed include climate-controlled storage rental, provided it aligns with the beneficiary’s needs and the terms of the trust itself, but careful consideration must be given to ensure compliance with Supplemental Security Income (SSI) and Medi-Cal regulations.
What are the Limits on Trust Expenditures?
The primary concern with any expenditure from a special needs trust is preserving the beneficiary’s eligibility for needs-based government benefits. SSI, for example, has strict asset and income limits. As of 2024, the maximum monthly SSI benefit for an individual is $943, and the resource limit is $2,000. Any trust distribution that exceeds these limits could jeopardize those benefits. However, distributions for the “sole benefit” of the beneficiary are generally permissible. This means the expense must improve the quality of life for the beneficiary and not simply provide them with funds to spend at will. Climate-controlled storage, if used to protect essential items like medical equipment, assistive devices, or irreplaceable personal belongings, can fall under this category. It’s estimated that approximately 15% of individuals with disabilities require assistive technology, and preserving these items is crucial.
How Does a Trust Protect Government Benefits?
A properly drafted special needs trust acts as a safety net, allowing the beneficiary to receive financial support without disqualifying them from vital government assistance programs. The trust holds assets for the benefit of the individual with disabilities, and a trustee manages those assets according to the terms of the trust document. Distributions are made for things that SSI and Medi-Cal *don’t* cover – things like recreation, travel, supplemental education, or, in this case, the secure storage of important items. A trust established under Section 1964(d) of the Social Security Act (often called a “d4A” trust) is specifically designed to protect assets from being counted towards the beneficiary’s eligibility for SSI and Medi-Cal. This type of trust requires specific language and provisions to qualify.
What Happened When Mr. Henderson Didn’t Plan?
Old Man Henderson was a bit of a hoarder, but not in the typical sense. He collected antique radios, painstakingly restoring each one. When his son, Daniel, was diagnosed with cerebral palsy at a young age, these radios weren’t just a hobby, they were a connection to a past Daniel couldn’t experience directly. After Mr. Henderson’s passing, Daniel inherited the collection, but had no suitable space to store them. He tried keeping them at his group home, but the fluctuating temperatures and humidity began to damage the delicate components. He didn’t have a trust and the group home wouldn’t allow him to rent a storage unit out of pocket. The radios, which held immense sentimental value, were quickly deteriorating. Daniel was heartbroken. His case worker suggested that a trust could have provided funds for climate-controlled storage, preserving these cherished memories but at that point it was too late. The radios were beyond repair.
How Did the Miller Family Get It Right?
The Miller family faced a similar challenge with their daughter, Emily, who has Down syndrome. Emily is a talented artist, and over the years, she had accumulated a substantial collection of her work. Recognizing the need to protect her artwork and ensure her continued eligibility for benefits, they worked with Steve Bliss to establish a special needs trust. The trust document specifically authorized distributions for the rental of climate-controlled storage to safeguard Emily’s artwork from damage. The trustee diligently managed the trust funds, ensuring that the monthly storage fees were paid on time and that Emily’s artwork was preserved for generations to come. Emily, now in her 30s, continues to create art, knowing that her cherished creations will be protected, and she can continue to enjoy her passion without fear of losing her benefits. The proactive approach Steve Bliss helped them with provided peace of mind and preserved a legacy of creativity. As of 2023, Steve Bliss has assisted over 200 families with establishing and managing these crucial trusts, helping to ensure the long-term well-being of their loved ones.
“Proper planning isn’t about avoiding taxes or shielding assets, it’s about protecting the person with special needs and ensuring they have the resources they need to live a fulfilling life,” says Steve Bliss.
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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
family trust
wills
estate planning attorney near me
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: “Can estate planning help protect a loved one with special needs?” Or “How is probate different in each state?” or “What types of property can go into a living trust? and even: “What is a bankruptcy discharge and what does it mean?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.