while some elder law and trust and estates practitioners are well-educated and well versed in the benefits of utilizing a particular needs trust (”snt”), as well as the discords and deviations amongst a self settled snt and a third party snt, one area of uproar and confusedness and consternation for the practitioner is the day to day administration of the snt.

pursuant to the provisions of eptl 7-1. 12, an snt is to be applied for the particular and supplemental needs of a disabled person, and not their day-to-day living expenditures suchlike food and shelter. Nevertheless, understanding and distinguishing the expenditures which can be paid from the snt, and those which are not allowed, as well as how payment can be made is often times confusing. It’s most important that the attorney comprehend which expenditures are given permission to be paid from the snt for the particular and supplemental needs of the beneficiary.

in administrating an snt it’s imperative that the trustee avoid undertaking any activity that jeopardizes the beneficiary’s eligibility for medicaid and/or ssi.

for example, the beneficiary of the snt ought not be given cash from the snt to make purchases for him or herself. Payments for goods and services had better be made directly to the vendor or supplier. A non-refundable, prepaid gift card is allowed as it allows the beneficiary the correct to incur goods or services. In holding with this principle, a non-refundable airline ticket, or show or sporting event ticket would likewise be allowed. The trustee can buy a personal and peculiar service for the beneficiary, since the service is not without apparent effort convertible to cash. As an illustration, payment for any particular therapy or environment and training is satisfactory.

a recipient of ssi and/or medicaid can use funds in the snt to remunerate for household emergencies suchlike the mend of a roof or payment of a telephone bill. It’s advisable that the trustee buy any household goods or items in the name of the trust and not the beneficiary. This would avoid the possibleness that the beneficiary would have agitate and control over the goods or items which could lead to a prostration and loss of benefits. Nevertheless, for a recipient of ssi, only if a household good or item is bought by the trustee and given to the beneficiary, therefore, the beneficiary’s benefits wouldn’t be peculiar and affected unless the beneficiary’s household goods exceed $2,000. 00. If a beneficiary receives an asset as the consequence of the trustee paying the bill for said asset, this could be deemed as income to the beneficiary which can disqualify him or her from benefits in the months received.

the following is picturesque and illustrative of the types of purchases that can be made by the trustee of an snt for the beneficiary which would or would not gusto and effect the beneficiary’s eligibility for medicaid and/or ssi:

(a) the buy of a home for the beneficiary of a snt wouldn’t gusto and effect his or her benefits if the title to the house is held in the name of the trust. The house wouldn’t be deemed a resource of the beneficiary, and would not impact his or her eligibility for benefits. The beneficiary is treated as if he or she is residing in his or her home, and not deemed to be receiving shelter, which would impact eligibility for benefits.

any payment by the trustee of the expenditures for the real property, suchlike taxes, rent, heat, gas, water, electricity, mortgage, rubbish removal and sewer would gusto and effect the beneficiary’s eligibility for benefits as they would be looked at income to the beneficiary. Home improvements or renovations are not considered income;

(b) the trustee’s buy of cable tv or satellite tv services, telephone service, internet service, newspaper and other news related magazines and periodicals wouldn’t impact the beneficiary’s eligibility for benefits. The trustees buy of computers, computer software and any upgrades for the computer are likewise permissible expenditures;

(c) the buy of an automobile for the beneficiary of the snt wouldn’t impact his or her eligibility for benefits.

additionally, the expenditures for the automobile insurance, maintenance and fuel are allowed. The buy of fuel for the automobile can be problematic depending on how payment of the fuel is made. It’s recommended that the beneficiary be given a gas company credit card that can’t be applied for other purchases which will directly bill the trust for the fuel purchases;

(d) the trustees are able to make boundless and unlimited expenditures for the travel and entertainment expenditures of the beneficiary. If the beneficiary is unable to travel alone, distributions from the snt for a travel associate are allowed. The payment of a beneficiary’s hotel expenditures are problematic as the argument could be made that they are shelter expenditures. Nevertheless, the argument can be countered if the beneficiary maintains a home;

(e) household furnishings and furniture can be bought by the trust;

(f) pre-paid funeral and burial arrangements can be owned by the trust for the benefit of the beneficiary. The arrangements ought not be owned by the beneficiary, as they could impact ssi benefits;

(g) legal and accounting fees can be paid by the trustee without impacting the beneficiary’s eligibility for benefits;

(h) the trustee can buy clothing for the beneficiary without effecting the beneficiary’s eligibility for benefits;

(i) the trustee, without any conditions and restrictions, can buy and make payment of lasting medical equipment, therapy, medication, substitute treatments, tuition, books, tutoring, care management and taxes of the beneficiary.

in conclusion, the above stated should provide you with a more suitable understanding of what the trustee of a snt will be allowed and not be given permission to do without effecting the beneficiary’s eligibility for medicaid and/or ssi as portion of the day-to-day administrator of a snt. It’s clearly a challenging and roundabout and elaborated task.