PERMITTED DISTRIBUTIONS FROM A SPECIAL NEEDS TRUST
A special needs trust can pay for many things without affecting the beneficiary’s eligibility for government benefits such as Supplemental l Security Income (SSI) or Medicaid.
The following list of generally permissible distributions from a special needs trust which will not reduce or eliminate SSI is not exhaustive. Distributions for food or shelter (“in kind support and maintenance”) will result in about a 1/3rd maximum reduction in SSI.
- Automobile/van
- Accounting services
- Acupuncture/acupressure
- Appliances (TV, microwave, stove, refrigerator, washer/dryer)
- Bottled water or water service
- Bus pass/public transportation costs
- Camera, film, recorder and tapes, development of film
- Clothing
- Clubs and club dues (sports clubs, book clubs, health clubs, service clubs, zoo, advocacy groups, museums)
- Computer hardware, software, programs, and Internet service
- Conferences
- Cosmetics
- Courses or classes (academic or recreational), including books and supplies
- Curtains, blinds, and drapes
- Dental work not covered by Medicaid, including anesthesia
- Down payment on home or security deposit on apartment
- Dry cleaning and/or laundry services
- Education expenses including tuition and related costs
- Elective surgery
- Eye glasses
- Fitness equipment
- Funeral expenses
- Furniture, home furnishings
- Gasoline and/or maintenance for automobile
- Haircuts/salon services
- Hobby supplies
- Holiday decorations, parties, dinner dances, holiday cards
- Home alarm and/or monitoring/response system
- Home improvements, repairs, and maintenance (not covered by Medicaid), including tools to perform home improvements, repairs, and maintenance by homeowner
- Home purchase (to the extent not covered by benefits)
- House cleaning/maid services
- Insurance (automobile, home and/or possessions)
- Legal Fees
- Linens and towels
- Magazine and newspaper subscriptions
- Massage
- Musical instruments, lessons and music
- Nonfood grocery items (laundry soap, bleach, fabric softener, deodorant, dish soap, hand and body soap, personal hygiene products, paper towels, napkins, Kleenex, toilet paper, and household cleaning products)
- Over-the-counter medications (including vitamins and herbs)
- Personal assistance services not covered by Medicaid
- Pet and pet supplies, veterinary services
- Physician specialists if not covered by Medicaid
- Private counseling if not covered by Medicaid
- Repair services (e.g., for appliances, automobile, bicycle, household, or fitness equipment)
- Spa Treatments
- Snow removal/landscaping/gardening and lawn services
- Sporting goods/equipment/uniforms/team pictures
- Stationery, stamps, and cards
- Storage units
- Taxicab
- Telephone service and equipment, including cell phone, pager
- Therapy (physical, occupational, speech) not covered by Medicaid
- Tickets to concerts or sporting events (for beneficiary and an accompanying companion, if necessary)
- Transportation (automobile, motorcycle, bicycle, moped, bus passes, insurance, vehicle license fees, gas, car repairs)
- Tuition and expenses connected with education
- Utility bills (satellite TV, cable TV, telephone—but not gas, water, or electricity)
- Vacation (including paying for a personal assistant to accompany the beneficiary, if necessary)
