Absolutely, a special needs trust can be a powerful tool to facilitate a beneficiary’s entrepreneurial endeavors, even something as creative and impactful as starting a podcast focused on disability topics. These trusts, often referred to as Supplemental Needs Trusts (SNTs), are specifically designed to hold assets for the benefit of individuals with disabilities without disqualifying them from crucial needs-based government benefits like Supplemental Security Income (SSI) and Medicaid. The key is structuring the trust and its distributions appropriately to align with program eligibility rules and the beneficiary’s goals. Approximately 61 million adults in the United States live with a disability, and providing avenues for self-expression and economic participation is vital, and a properly managed trust can fund those opportunities.
What expenses could a special needs trust cover for a podcast?
A special needs trust can cover a wide range of expenses related to launching and maintaining a podcast. This includes the purchase of essential equipment such as microphones, headphones, recording software, and a computer. Costs for editing, music licensing, and potentially hiring a virtual assistant to help with production and social media promotion can also be covered. Furthermore, the trust could fund website hosting, domain registration, and marketing expenses to reach a wider audience. “The ability to share stories and advocate for change is incredibly empowering, and a trust can provide the financial means to do so,” says Ted Cook, a San Diego estate planning attorney specializing in special needs trusts. It is important to remember that expenses need to be “supplemental” – meaning they don’t cover basic needs already met by government benefits.
How do I avoid jeopardizing government benefits with trust distributions?
The biggest concern when using trust funds for entrepreneurial activities is ensuring compliance with SSI and Medicaid rules. Distributions for “substantial gainful activity” (SGA) – meaning work that exceeds certain income thresholds – can jeopardize benefits. However, a well-structured trust can provide funds for podcasting as a *non-paying* activity. The trust can cover expenses, but the beneficiary shouldn’t receive direct income from the podcast. Any revenue generated should be directed back into the trust to offset expenses, or to a separate account earmarked for allowable purchases – avoiding direct payment to the beneficiary. According to the Social Security Administration, in 2023, the SGA amount was $1,310 per month for non-blind individuals. Staying below that threshold, or ensuring income is properly handled through the trust, is critical.
I remember a family who didn’t plan ahead, and it was devastating.
Old Man Tiber, a retired carpenter, adored his grandson, Leo, who had cerebral palsy. Leo was incredibly bright and passionate about accessibility issues, always dreaming of sharing his experiences. Unfortunately, Tiber hadn’t established a special needs trust for Leo. When Tiber passed away, Leo inherited a small sum of money directly. Within months, Leo’s SSI benefits were suspended because the inheritance exceeded the asset limits. He lost access to vital medical care and support services, and his dream of advocating for others was put on hold. The family scrambled to find ways to protect the remaining funds, facing a complex legal and financial battle that could have been avoided with proactive planning. It was a painful lesson about the importance of trusts in preserving both financial security and access to crucial benefits.
But then came Maya, and everything turned around.
Maya, a young woman with Down syndrome, had a powerful message to share about inclusivity. Her mother, Sarah, worked with Ted Cook to establish a special needs trust that would allow Maya to pursue her passion for podcasting. The trust funded all the necessary equipment, editing software, and online marketing. Importantly, the trust was structured so that any revenue generated from the podcast was directed back into the trust to cover expenses, ensuring Maya’s benefits remained intact. Within months, Maya’s podcast gained a loyal following, providing a platform for her to share her insights and advocate for a more inclusive world. Sarah watched with pride as Maya thrived, empowered by her ability to express herself and make a difference. It proved that with careful planning and a well-structured trust, anything is possible.
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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