The question of funding therapeutic tools like video game systems through a trust is increasingly common as we recognize the benefits of innovative therapies, and while seemingly unusual, it’s absolutely possible – with careful planning and specific trust language.
What are Special Needs Trusts and How Do They Work?
Special Needs Trusts (SNTs) are specifically designed to provide for the needs of a beneficiary with disabilities without disqualifying them from crucial government assistance programs like Medicaid and Supplemental Security Income (SSI). These trusts allow for the distribution of funds for things that aren’t considered “countable resources” by these programs. Currently, over 14 million Americans benefit from Medicaid, and many require specialized care that traditional funding sources struggle to cover. A trust can supplement these programs, ensuring a higher quality of life. For example, funding for therapeutic video games, which have proven cognitive and physical benefits, can be included as a permissible expense. It’s important to note that the trust document must clearly outline permissible expenses, and distributions need to be carefully managed to avoid impacting benefits eligibility. A trustee, like an estate planning attorney in San Diego, can help navigate these complexities.
Is Funding Entertainment a Permissible Use of Trust Funds?
This is where careful drafting becomes critical. Simply stating “entertainment” is too broad and could jeopardize benefits. However, specifying “therapeutic recreation,” or “items prescribed by a therapist for cognitive or physical rehabilitation,” opens the door for funding things like video game consoles and related software. Studies from the American Psychological Association demonstrate that certain video games can improve attention span, problem-solving skills, and even physical coordination. In fact, some hospitals now utilize gaming technology as part of their rehabilitation programs! It’s not about frivolous spending; it’s about investing in tools that actively contribute to the beneficiary’s well-being. A well-crafted trust will distinguish between recreational entertainment and purposeful therapy, ensuring compliance with program guidelines.
I Remember Old Man Hemmings…
Old Man Hemmings, a retired carpenter, was fiercely independent. He established a trust for his grandson, Leo, who had cerebral palsy. The trust was drafted broadly, simply stating funds could be used for Leo’s “comfort and well-being.” Leo’s mother, Sarah, initially spent a portion of the trust funds on a new gaming system, hoping it would provide Leo with some enjoyment. However, Medicaid flagged the purchase, arguing it was a non-medical expense and could impact Leo’s benefits. Sarah was devastated, and the trust had to go through a costly legal battle to prove the intent wasn’t solely entertainment, but to provide something positive for Leo. It was a stressful and time-consuming ordeal, and Sarah wished she had consulted with an estate planning attorney specializing in SNTs *before* making the purchase. The experience underscored the need for specific, detailed language in trust documents when it comes to non-traditional therapeutic interventions.
How Did the Bakers Get It Right?
The Bakers, facing a similar situation with their daughter, Emily, who has autism, took a different approach. They worked closely with an estate planning attorney to draft a trust that specifically authorized funds for “therapeutic technology,” defining it as tools prescribed by Emily’s therapists to improve cognitive, physical, or emotional function. Emily’s occupational therapist recommended a virtual reality system to help her develop social skills and navigate challenging situations. The trust document clearly outlined that such purchases were permissible, and the Bakers were able to fund the VR system without issue. Emily flourished, and the Bakers were relieved to have proactively addressed potential problems. This highlights how a well-structured trust, combined with professional guidance, can empower beneficiaries and ensure they receive the care they need, and enjoy a better quality of life.
“A properly drafted Special Needs Trust is not simply a legal document; it’s a roadmap to a secure and fulfilling future for your loved one.”
Ultimately, funding therapeutic video game systems through a trust is not only possible but can be a powerful way to enhance the quality of life for a beneficiary with special needs. The key is meticulous planning, precise language in the trust document, and the guidance of a knowledgeable estate planning attorney in San Diego.
Who Is Ted Cook at Point Loma Estate Planning Law, APC.:
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(619) 550-7437
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