Now that I know I need a Special Needs Trusts, the question is: What can I pay for with my trust? How and what you can purchase from your Special Needs Trust varies significantly based on what type of benefits you are eligible for several other factors not discuss in this post. This is meant to give you a general idea of what you can utilize the assets in your trust for.
If you have Medicaid/Medical only you may have your trust pay for any item including In-kind Support & Maintenance (ISM) items such as groceries, utilities such as, gas, electricity, water, sewer, heating fuel, garbage removal so long as you partially contribute to your bills.
If you currently have SSI In-kind Support & Maintenance (ISM) items such as groceries, utilities such as, gas, electricity, water, sewer, heating fuel and garbage removal, can be paid only if you elect to take a Presumed Maximum Value (PMV) reduction from your monthly Supplemental Security Income check. With a PMV reduction ISM items may be paid. This is very helpful if your trust has significant assets, because your SSI can only be reduced based on 1/3rd of the federal rate of $733 plus $20 dollars. So if you can afford a reduction of a maximum of $264 dollars, your trust can pay for anything that is for your sole benefit.
Example: The Federal SSI Rate: $733 ÷ 3 = $244.00 + $20 = $264.00 Maximum Reduction to SSI.
CONCLUSION: This post is meant to provide a general idea of how useful and comprehensive
DISCLAIMER The following forms are provided by CPT for informational purposes only and are intended to be used as a guide prior to consultation with an attorney familiar with your specific legal situation. CPT is not engaged in rendering legal advice, and this form is not a substitute for the advice of an attorney. If you require legal advice, you should seek the services of an attorney. © 2017 CPT All rights reserved.
William E. Lindahl, MBA, CLPF