Estate planning, at its core, isn’t just about dividing assets after someone is gone; it’s about ensuring a loved one’s wishes are carried out, and their needs are met, even during their lifetime. A common question we at Steve Bliss Law receive is whether a trust can cover expenses like therapeutic dance or movement classes, particularly for beneficiaries with specific health or emotional needs. The answer, as with most things in estate planning, is nuanced. It depends heavily on the specific language within the trust document itself, the type of trust established, and the beneficiary’s circumstances. Roughly 65% of Americans lack a comprehensive estate plan, often leading to unforeseen complications when attempting to utilize trust funds for non-traditional care needs. Understanding the framework allows for proactive planning and peace of mind for both the grantor—the person creating the trust—and the beneficiary.
What expenses can a revocable living trust cover?
A revocable living trust allows for flexibility during the grantor’s lifetime. Funds within the trust can generally be used for anything the grantor would use their personal funds for, including healthcare, education, and quality-of-life expenses. This includes therapeutic interventions like dance or movement classes if they are deemed beneficial for the beneficiary’s well-being. However, the trustee—the person managing the trust—has a fiduciary duty to act in the best interests of the beneficiary and must exercise reasonable judgment when approving expenses. Documentation supporting the therapeutic value of these classes, like a recommendation from a physician or therapist, is crucial. It’s important to remember that a revocable trust does not offer asset protection benefits during the grantor’s life, but it does provide a smooth transfer of assets upon death.
Are therapeutic dance classes considered ‘healthcare’ expenses?
This is where it gets a little tricky. While traditional medical treatments are easily categorized as healthcare, the classification of alternative therapies like therapeutic dance can be more ambiguous. If the classes are prescribed by a medical professional as part of a treatment plan for a diagnosed condition—such as anxiety, depression, or Parkinson’s disease—then they can likely be classified as medical expenses. “Movement is a medicine for creating change in your physical, emotional, and mental states.” – Jessica Woolf. However, if they are simply pursued for general wellness or enjoyment, it may be more difficult to justify them as a legitimate healthcare expense, particularly if the trust document has specific limitations on what constitutes medical care. It is always best practice to maintain detailed records and obtain supporting documentation from the healthcare provider.
Can an irrevocable trust be used to pay for these types of services?
Irrevocable trusts offer less flexibility than revocable trusts. Once assets are transferred into an irrevocable trust, they are generally no longer considered the grantor’s property. Whether these funds can be used for therapeutic dance classes depends entirely on the terms of the trust. Some irrevocable trusts are established with broad discretionary powers granted to the trustee, allowing them to use funds for the beneficiary’s “health, education, maintenance, and support.” Others may have very specific guidelines, limiting the types of expenses that can be paid. According to a 2023 study, approximately 40% of irrevocable trusts contain language that specifically excludes alternative therapies. It’s essential to review the trust document carefully to determine what is allowed.
What happens if the trust document is silent on alternative therapies?
If the trust document doesn’t specifically address alternative therapies, the trustee must exercise their best judgment, acting in good faith and in the best interests of the beneficiary. They should consider the beneficiary’s needs, the potential benefits of the therapy, and the overall financial situation of the trust. Obtaining a professional opinion from a healthcare provider supporting the therapeutic value of the classes is crucial. The trustee also has a responsibility to document their decision-making process, demonstrating that they acted prudently and in accordance with their fiduciary duties.
I once worked with a family where the mother had meticulously planned her estate, including a trust for her son with autism
She included provisions for his care, but the document was vague about therapies beyond traditional medical treatments. After her passing, her son began attending a therapeutic dance program that significantly improved his communication and social skills. The trustee initially hesitated to approve the expenses, concerned they weren’t explicitly covered by the trust. It led to a tense situation and almost resulted in legal action. After months of back and forth, and with a strong recommendation from the son’s therapist, the trustee ultimately relented, recognizing the profound positive impact the classes were having on his well-being. But the entire process could have been avoided with clearer language in the trust document outlining acceptable therapies.
What documentation is needed to support a claim for therapeutic dance classes?
To ensure a smooth process, it’s vital to have solid documentation. This includes a letter from a medical professional—a doctor, therapist, or qualified movement specialist—explaining the diagnosis, the rationale for recommending therapeutic dance, and the expected benefits. Detailed invoices from the dance program, outlining the dates of service, the cost per session, and the qualifications of the instructors, are also essential. Any progress reports or evaluations documenting the beneficiary’s improvement are highly valuable. Keeping meticulous records is critical, as it demonstrates that the expenses are legitimate and justified.
I had a client, old Mr. Henderson, who was determined to ensure his granddaughter, Lily, received the best possible care, even after he was gone
He was a retired dancer himself and understood the power of movement. He worked with us to draft a trust that specifically included provisions for “creative arts therapies,” explicitly mentioning dance and movement as acceptable expenses. He even included a clause stating that the trustee should prioritize therapies that fostered Lily’s emotional expression and well-being. After his passing, Lily continued attending her dance classes without any issues, benefiting immensely from the therapeutic experience. It was a beautiful example of how thoughtful estate planning can truly enhance someone’s quality of life, even beyond financial security.
What steps can I take now to ensure my trust covers these types of expenses?
The best approach is to be proactive. When drafting your estate plan, clearly specify the types of therapies you want to be covered by your trust, including dance or movement classes. Use broad language, such as “creative arts therapies” or “holistic health services,” to encompass a range of options. You can also include a clause stating that the trustee has the discretion to approve expenses that promote the beneficiary’s physical, emotional, and mental well-being. Work with an experienced estate planning attorney—like those at Steve Bliss Law—to ensure your wishes are clearly documented and legally enforceable. This will provide peace of mind, knowing that your loved ones will receive the care they need, even after you are gone.
About Steven F. Bliss Esq. at San Diego Probate Law:
Secure Your Family’s Future with San Diego’s Trusted Trust Attorney. Minimize estate taxes with stress-free Probate. We craft wills, trusts, & customized plans to ensure your wishes are met and loved ones protected.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Probate Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Map To Steve Bliss at San Diego Probate Law: https://maps.app.goo.gl/FsnnVk2nETP3Ap9j7
Address:
San Diego Probate Law3914 Murphy Canyon Rd, San Diego, CA 92123
(858) 278-2800
Key Words Related To San Diego Probate Law:
| living trust attorney | wills and trust lawyer | wills attorney |
| conservatorship | living trust attorney | estate planning lawyer |
| dynasty trust attorney | probate lawyer | revocable living trust attorney |
Feel free to ask Attorney Steve Bliss about: “Can I include life insurance in a trust?” or “What is a notice of proposed action?” and even “Can I restrict how beneficiaries use their inheritance?” Or any other related questions that you may have about Estate Planning or my trust law practice.