Trustees of special needs trusts are frequently approached by family members of trust beneficiaries who would like to be paid as caregivers for the beneficiaries.  While the Social Security Administration (SSA) currently does not explicitly prohibit payment of family caregivers from special needs trusts that support Supplemental Security Income (SSI) recipients, there are plenty of other reasons why trustees should be cautious about doing so.

The Earned Income Tax Credit gives people with disabilities an incentive to file a tax return even if they are not required to do so. 

A U.S. district court refuses to dismiss a claim for reformation of a pooled special needs trust to force the trust to distribute a deceased beneficiary\’s remainder interest to the beneficiary\’s family. National Foundation for Special Needs Integrity v. Reese (U.S. Dist. Ct., S.D. Ind., No. 1:15-cv-00545-TWP-DKL, Feb. 5, 2016).

A federal district court remands an SSI overpayment case to the administrative law judge in order to properly determine if a conservatorship account established for the SSI beneficiary was used for her support and maintenance, rendering her ineligible for SSI.  Shields v. Commissioner of Social Security (W.D.Mich.N.Dist., No. 2:14-cv-226, Dec. 17, 2015).

Florida ASNP member Scott Solkoff has been selected to receive the National Academy of Elder Law Attorneys\’ 2016 John J. Regan Writing Award for his article \”Report on the Patient Protection and Affordable Care Act: Its Impact on the Special Needs and Elder Law Practice.\” 

A New Jersey appeals court overturns the state Division of Medical Assistance and Health Services\’ denial of a woman with disabilities\’ request for a motorized wheelchair to help her get around a nursing home, finding that it is medically necessary and not equipment that a nursing home would typically provide as part of its per diem services.  M.S. v. Division of Medical Assistance and Health Services (N.J.Sup.Ct.App.Div., No. A-4816-13T3, Jan. 14, 2016).

The 10th Circuit Court of Appeals upholds a federal district court\’s decision to dismiss a case brought by a Colorado woman with disabilities who alleged discrimination after the state refused to compensate her personal care attendant for their time driving her to medical appointments.  Taylor v. Colorado Department of Health Care Policy and Financing (10th Cir., No. 14-1161, Jan. 26, 2016).

An Alabama appeals court rules that a Medicaid applicant\’s special needs trust is an available resource because the trustee had discretion to make payments under the trust. Alabama Medicaid Agency v. Hardy (Ala. Civ. App., No. 2140565, Jan. 29, 2016).

In some cases, the donor of a special needs trust may want to provide an extra level of assistance to the trust\’s beneficiary by naming a trust adviser to assist the trustee with trust management. 

You want to ensure that your child with special needs will remain financially secure even when you are no longer there to provide support, but determining how much a special needs trust (SNT) should hold is no small feat.