What a Special Needs Trust Can Be Used for
When a person has a special needs trust set up, he or she cannot directly receive the money in it. However, the trustee of the fund can use the money to pay for items on the recipient’s behalf. Working with a trust administration lawyer in Las Vegas can help trustees and family members correctly add to and use the trust’s funds for the recipient.
A special needs trust can usually be paid for uncountable resources for the recipient. Uncountable resources are those that do not disqualify a person from Medicaid coverage or Social Security disability income. Some things that qualify for uncountable resources include a home with a value of less than $500,000, one motor vehicle and furnishings for a home, such as a new mattress and box spring set or an upholstered chair to sit on.
The special needs trust can also be used for the recipient’s personal effects and most of their everyday needs. For example, the recipient may need a new pair of shoes every three months and a few pairs of pants each year. The special needs trust can be used to buy shoes, clothing, toiletries and household products.
A special needs trust cannot be used to pay for countable resources. A countable resource includes cash, money in a checking or savings account, a vacation home, a rental home, stocks and bonds, retirement investments and other investment accounts. Burial expenses in excess of $1,500 cannot be paid for with a special needs trust. If the person’s burial has already been paid for with other funds, this is okay. The special needs trust cannot pay for a life insurance policy with more than a $1,500 cash value.