Can a special needs trust cover speech-to-text technology subscriptions?

The question of whether a special needs trust (SNT) can cover speech-to-text technology subscriptions is a common one, and the answer is generally yes, with important caveats. SNTs are specifically designed to supplement, not replace, government benefits like Supplemental Security Income (SSI) and Medicaid. Therefore, any expenditure from the trust must adhere to the guidelines ensuring it doesn’t disqualify the beneficiary from receiving those crucial services. Speech-to-text subscriptions, when deemed medically necessary to enhance communication and independence, often fall within allowable expenses. However, careful documentation and a clear understanding of the trust’s provisions are paramount, and as of 2023, approximately 11.1% of the U.S. population experiences some form of communication disability, making access to these technologies increasingly vital.

What are the rules around using SNT funds?

Special Needs Trusts are governed by strict rules to preserve eligibility for needs-based government benefits. Generally, SNT funds can be used for expenses that enhance the beneficiary’s quality of life but aren’t covered by public assistance programs. These include things like therapies, recreation, and assistive technology – which absolutely encompasses speech-to-text software. However, the key is ‘supplement, not supplant’. The IRS and Social Security Administration (SSA) scrutinize trust distributions to ensure they don’t indirectly provide income or resources that would jeopardize benefits. “A trust distribution for something that Medicaid or SSI would normally cover will likely disqualify the beneficiary,” explains Ted Cook, a San Diego estate planning attorney specializing in SNTs. Expenses must be over and above what public benefits provide, and must demonstrably improve the beneficiary’s independence and ability to participate in life.

Could speech-to-text be considered a “medical expense”?

For speech-to-text subscriptions to be covered by an SNT, they often need to be justifiable as a medical expense. This requires documentation from a physician or qualified therapist outlining the beneficiary’s communication needs and how the technology addresses them. For example, if a beneficiary has a neurological condition affecting their ability to write or type, a speech-to-text subscription allowing them to communicate independently through voice-to-text could be considered medically necessary. It is important to remember that the SSA and Medicaid look to see how the tool enhances the person’s ability to perform daily living activities and maintain a certain quality of life. Ted Cook recalls a case where a client’s son, diagnosed with cerebral palsy, struggled to communicate effectively, hindering his educational progress. The cost of the subscription was fully covered by the SNT after the proper medical documentation was provided.

What happens if an SNT pays for something that shouldn’t be covered?

I once worked with a family where a well-intentioned aunt, acting as trustee, decided to use SNT funds to purchase a top-of-the-line gaming computer for her nephew, believing it would provide him with entertainment. The nephew, who had Down syndrome, did receive SSI, but the SSA quickly flagged the purchase, deeming it a non-essential item not related to his care or well-being. As a result, the beneficiary faced a temporary suspension of SSI benefits until the trust reimbursed the agency for the cost of the computer. This caused significant stress and financial hardship for the family. It was a frustrating situation that could have been easily avoided with proper guidance on acceptable trust expenditures. These types of scenarios are why careful attention to detail is required when administering a SNT.

How can you ensure smooth SNT distributions for assistive technology?

Thankfully, there are ways to mitigate these risks. I recently worked with the Miller family, whose daughter, Sarah, has a rare speech disorder. They proactively sought legal counsel from Ted Cook before establishing the SNT. Ted advised them to include a provision specifically outlining acceptable expenses, including assistive technology. Sarah’s physician wrote a detailed letter to the trustee, explaining how the speech-to-text software would improve her ability to participate in school and eventually seek employment. The trustee meticulously documented all expenses, ensuring alignment with the trust’s provisions and Sarah’s medical needs. As a result, the distributions were seamless, and Sarah’s benefits remained intact. This case demonstrates that proactive planning, meticulous documentation, and legal expertise are essential for successfully administering an SNT and maximizing its benefits for the beneficiary. A well-structured trust and a knowledgeable trustee can ensure that critical resources are available to support the beneficiary’s independence and well-being for years to come.


Who Is Ted Cook at Point Loma Estate Planning Law, APC.:

Point Loma Estate Planning Law, APC.

2305 Historic Decatur Rd Suite 100, San Diego CA. 92106

(619) 550-7437

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