The question of whether a special needs trust (SNT) can fund the long-term storage of medical records is a nuanced one, heavily dependent on the trust’s specific language and the beneficiary’s overall care plan. Generally, SNTs are designed to supplement, not supplant, government benefits like Medi-Cal and Supplemental Security Income (SSI). While direct payment for routine record storage might be viewed as a permissible supplemental expense, the key lies in ensuring it doesn’t jeopardize the beneficiary’s eligibility for these crucial programs. Approximately 65% of individuals with significant disabilities rely on government assistance for essential needs, making the preservation of eligibility paramount. SNTs are powerful tools, but require careful administration to avoid unintended consequences.
What Expenses *Can* a Special Needs Trust Cover?
A properly drafted SNT can cover a wide range of expenses that enhance the beneficiary’s quality of life *without* impacting their public benefits. These often include items like specialized equipment, therapies not covered by insurance, recreational activities, and even personal care services. However, the IRS scrutinizes SNTs to ensure funds aren’t used for “in-kind support and maintenance” which could disqualify the beneficiary from needs-based benefits. For example, paying for a full-time caregiver is generally permissible, while simply covering the costs of groceries and housing would not be. The Department of Health and Human Services (DHHS) offers guidelines on permissible expenses, but interpretation can be complex and often requires legal counsel. The average cost of ongoing specialized care for individuals with complex medical needs can exceed $20,000 annually, highlighting the importance of a well-funded and properly managed trust.
Is Medical Record Storage Considered “Support and Maintenance”?
This is where the question becomes tricky. Simply storing records *could* be seen as part of the ongoing “maintenance” of the beneficiary’s health, potentially disqualifying them from benefits. However, a strong argument can be made that long-term, secure storage is *essential* for effective care, particularly if the beneficiary has complex medical needs or requires ongoing treatment. Consider a scenario where a beneficiary requires a rare medication. If records detailing their initial diagnosis and treatment plan are lost or inaccessible, it could severely compromise their care. It’s crucial to document *why* the storage is necessary—is it for historical reference, legal reasons, or to facilitate transitions in care? “We’ve seen cases where missing records delayed treatment by weeks, creating serious health risks,” shared Ted Cook, a San Diego estate planning attorney specializing in SNTs. Approximately 30% of medical records are inaccurately or incompletely transferred between providers, underlining the need for secure, centralized storage.
What Happened When Records Were Lost?
Old Man Tiber was a spirited man, a carpenter by trade, but a stroke left him unable to communicate effectively and reliant on a network of caregivers. His daughter, Sarah, had established a SNT to ensure he received the best possible care. She meticulously documented everything, but she didn’t consider long-term record storage as a necessary expense. After a change in caregivers, critical medical records – detailing his allergies, medications, and previous surgeries – were misplaced. During an emergency room visit, the new caregivers were unable to provide accurate information, leading to a misdiagnosis and a potentially life-threatening allergic reaction. The incident served as a painful lesson; Sarah realized the importance of preserving these records, not just for daily care, but as a safeguard against unforeseen emergencies.
How Proactive Planning Saved the Day
Following the incident with Old Man Tiber, Sarah consulted with Ted Cook. He advised her to amend the SNT to specifically include funding for secure, long-term medical record storage—a digital archiving service was chosen for its accessibility and security. The trust funds now cover the annual subscription fee, ensuring that all medical records are safely stored and readily available to authorized caregivers, no matter who they are. “It’s about peace of mind,” Ted explained. “Knowing that crucial medical information is always accessible, even in a crisis, is invaluable.” Sarah also created a detailed medical passport, a concise summary of her father’s key medical information, stored both digitally and in a waterproof container. This proactive approach ensured that, even if the digital records were temporarily unavailable, essential information would still be accessible. “It’s not just about *having* the records,” Ted emphasized, “it’s about *accessing* them when they’re needed.”
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
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