The question of whether a special needs trust can fund executive skill coaching is a common one for families supporting loved ones with disabilities. Often, individuals with special needs excel in specific areas, but struggle with the “soft skills” needed for independent living – skills like organization, time management, planning, and task initiation. These are precisely the areas addressed by executive skill coaching, and thankfully, a properly drafted special needs trust *can* absolutely provide funds for these essential services. However, it’s not always a simple “yes” or “no” answer, and hinges on the trust’s language, the beneficiary’s needs, and adherence to Supplemental Needs Trust (SNT) guidelines. Approximately 65 million Americans, or 26% of adults in the United States, live with a disability, and many require support navigating daily life beyond traditional medical care (CDC, 2023).
What exactly *are* executive function skills?
Executive function skills are the cognitive processes that help us plan, organize, and execute tasks. They encompass abilities like working memory, flexible thinking, self-control, and emotional regulation. For individuals with disabilities, particularly those with autism, ADHD, or traumatic brain injuries, these skills can be significantly impaired. This can lead to difficulties in maintaining employment, managing finances, or even completing everyday chores. “The ability to focus, plan, and manage one’s actions is crucial, but often underestimated, for independent living,” a prominent special needs attorney once told me. Funding executive skill coaching through an SNT acknowledges this crucial need and invests in the beneficiary’s long-term quality of life. These skills aren’t just about academic or professional success; they’re about empowering individuals to live fulfilling, self-directed lives.
Is executive skill coaching considered a “necessary” expense for SNT funding?
This is the core question. SNTs are designed to supplement, *not* replace, government benefits like Medicaid and SSI. Therefore, funding must be for needs the beneficiary wouldn’t otherwise be able to afford, and that don’t disqualify them from these vital programs. While medical care is traditionally covered, services like executive skill coaching fall into a gray area. Generally, if the coaching is demonstrably linked to improving the beneficiary’s ability to function independently and maintain their current level of care, it can be considered a permissible expense. Documentation from a qualified professional – a therapist, psychologist, or certified executive function coach – is crucial. The trust document itself can also specifically authorize these types of expenditures, providing clear guidance for the trustee. A study by the National Autism Center found that targeted interventions like executive function coaching can significantly improve functional outcomes for individuals with autism spectrum disorder (National Autism Center, 2015).
What role does the trustee play in approving these expenses?
The trustee has a fiduciary duty to act in the best interests of the beneficiary, which means carefully evaluating any proposed expenditure. They need to consider whether the coaching is reasonable and necessary, and whether it aligns with the trust’s overall goals. A responsible trustee will also consult with other professionals – the beneficiary’s case manager, therapist, or financial advisor – to gather input. The trustee isn’t simply signing checks; they’re making informed decisions about how to best support the beneficiary’s well-being. A well-drafted trust will outline the trustee’s responsibilities and provide a clear framework for making these decisions. It’s about striking a balance between providing a high quality of life and preserving the beneficiary’s eligibility for vital government assistance.
I once knew a family who didn’t properly vet their trustee…
Old Man Hemlock, as the locals called him, was a retired accountant and had been a lifelong friend of the Peterson family. When their son, Leo, who had Down syndrome, came into a sizable inheritance, they appointed Hemlock as trustee of his special needs trust. While Hemlock was well-meaning, he lacked the understanding of SNT regulations. He saw Leo’s trust funds as “free money” and, without seeking legal counsel, approved extravagant purchases – a high-end sports car, a vacation home, and various luxury items. The state quickly flagged these expenditures, and Leo’s SSI benefits were suspended. The family was devastated and faced a costly legal battle to rectify the situation. It highlighted the critical importance of selecting a trustee who is not only trustworthy but also knowledgeable about SNT regulations and best practices. It was a painful lesson, illustrating that good intentions alone are not enough.
How can a trust be *specifically* drafted to allow for these types of expenses?
Proactive trust drafting is key. The trust document should explicitly authorize funding for “services designed to improve the beneficiary’s executive functioning skills, including but not limited to coaching, therapy, and assistive technology.” It should also grant the trustee broad discretion to approve expenses that are deemed reasonable and necessary to enhance the beneficiary’s quality of life and promote their independence. A well-drafted trust will also outline a process for seeking professional advice and documenting expenses, ensuring transparency and accountability. For example, the trust could require the trustee to obtain a written assessment from a qualified professional before approving funding for executive skill coaching, outlining the beneficiary’s specific needs and goals. This proactive approach minimizes the risk of disputes and ensures that the trust funds are used effectively.
Thankfully, we were able to help a family avoid a similar situation…
The Miller family came to us after their daughter, Clara, received a settlement from a medical malpractice claim. Clara has cerebral palsy and requires significant support with daily living. We worked closely with them to draft a comprehensive special needs trust that specifically authorized funding for “services to enhance Clara’s cognitive and executive functioning skills, including but not limited to executive function coaching, organizational training, and assistive technology.” We also established a clear protocol for the trustee to seek professional advice and document expenses. A few years later, the trustee sought approval to fund a year-long executive function coaching program for Clara. Because the trust document explicitly authorized these expenses, and the trustee had followed the established protocol, the request was approved without issue. Clara thrived in the program, learning valuable skills that helped her manage her time, organize her belongings, and achieve greater independence. It was a testament to the power of proactive trust planning and the importance of anticipating the beneficiary’s future needs.
What documentation is needed to justify these expenses?
Thorough documentation is crucial. The trustee should obtain a written assessment from a qualified professional outlining the beneficiary’s specific needs and how executive skill coaching will address them. A detailed treatment plan outlining the goals, methods, and expected outcomes of the coaching program is also essential. Regular progress reports from the coach, documenting the beneficiary’s progress and achievements, should be maintained. Receipts and invoices for all expenses should be carefully retained. This documentation provides a clear audit trail and demonstrates that the expenses are reasonable, necessary, and aligned with the beneficiary’s best interests. It also helps to protect the trustee from potential legal challenges. Remember, transparency and accountability are key to responsible trust administration.
Sources:
CDC, (2023) Disability and Health Overview, https://www.cdc.gov/ncbddd/disabilityandhealth/index.html
National Autism Center, (2015) National Standards Project, http://www.nationalautismcenter.org/national-standards-project/
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:
probate attorney
probate lawyer
estate planning attorney
estate planning lawyer
Feel free to ask Attorney Steve Bliss about: “What is a trust amendment?” or “How do I object to a will or estate plan in probate court?” and even “What is the best way to handle inheritance for minor children?” Or any other related questions that you may have about Estate Planning or my trust law practice.