The question of whether a special needs trust (SNT) can cover the cost of certification in a hobby-related skill is a common one, and the answer, as with many things in estate planning, is “it depends.” Generally, SNTs are designed to supplement, not supplant, the beneficiary’s own resources and any government benefits they receive, such as Supplemental Security Income (SSI) and Medicaid. However, carefully drafted trusts *can* allow for enrichment activities that improve quality of life, as long as those activities don’t jeopardize benefits eligibility. According to the National Disability Rights Network, approximately 61 million adults in the United States live with a disability, highlighting the prevalence and importance of effective special needs planning.
What Expenses are Typically Allowed by a Special Needs Trust?
Traditionally, SNTs cover essential needs: medical expenses not covered by insurance, therapies, adaptive equipment, and even things like personal care items. But modern SNTs, particularly those established with a focus on quality of life, are increasingly flexible. Enrichment activities—things that promote the beneficiary’s well-being, social engagement, and personal growth—are often permissible. This can include things like art classes, music lessons, gym memberships, and even travel. The key is that the expenditure must be demonstrably beneficial to the beneficiary and not considered a ‘luxury’ that would disqualify them from needs-based benefits. Approximately 1 in 5 Americans have some type of disability, making this a vital area of planning.
Could a Hobby Certification be Considered a “Necessary” Expense?
Here’s where it gets tricky. A hobby-related certification, like becoming a certified scuba diver, a master gardener, or a professional photographer, isn’t automatically considered a “necessary” expense. However, if the certification can be demonstrated to contribute to the beneficiary’s therapeutic goals, promote social interaction, or potentially lead to volunteer work or even a small income stream (without exceeding income limits for benefits), it *could* be approved. For example, if a beneficiary with autism finds solace and develops valuable social skills through photography, a certification course could be framed as a therapeutic activity. A well-drafted trust will anticipate these situations and provide a mechanism for discretionary distributions based on the trustee’s judgment. “The trustee is the gatekeeper,” says Steve Bliss, a Wildomar estate planning attorney specializing in special needs trusts, “They must balance the beneficiary’s desires with the need to protect their benefits.”
I Remember Old Man Hemlock and His Trains
I recall a case a few years ago, Mr. Hemlock, a man in his late 60s who had lived with intellectual disabilities his entire life. His mother, a forward-thinking woman, had established a SNT for him. He’d always been fascinated with model trains. When he expressed a desire to take a certification course in model railroad construction, his sister, the trustee, initially hesitated. She worried it was frivolous and wouldn’t be approved by Medicaid. She’d spent hours poring over the trust document, unsure if it covered something so…niche. He became increasingly despondent, losing interest in other activities. His care team flagged a significant decline in his emotional well-being. It was a clear example of something that, while not strictly ‘necessary’ for survival, was essential for his quality of life. Eventually, she consulted with Steve Bliss, who advised her that, given the documented therapeutic benefit and the trust’s broad language, the certification was likely permissible.
A Smooth Ride with Planning and Preparation
More recently, we worked with the Miller family, whose adult son, David, had Down syndrome. David enjoyed woodworking and expressed an interest in becoming a certified artisan. Unlike the situation with Mr. Hemlock, the Millers proactively approached us *before* David enrolled in the course. We reviewed the trust document, ensured it had sufficient flexibility, and drafted a letter outlining the anticipated benefits—increased self-esteem, potential for social interaction, and even the possibility of selling his creations at local craft fairs. We provided this letter to the regional Medicaid office, along with a statement from David’s therapist supporting the activity. The request was approved without issue. David flourished, gaining confidence and forming meaningful connections through his woodworking. This illustrates the power of proactive planning: When a special needs trust is well-drafted and the trustee is informed, even seemingly discretionary expenses can be approved, enhancing the beneficiary’s life without jeopardizing essential benefits. As Steve Bliss often says, “A trust isn’t just about protecting assets; it’s about protecting possibilities.”
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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
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Map To Steve Bliss Law in Temecula:
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Feel free to ask Attorney Steve Bliss about: “What is probate and how can I avoid it?” Or “Can an executor be removed during probate?” or “Can retirement accounts be part of a living trust? and even: “Can I convert my Chapter 13 bankruptcy to Chapter 7?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.