Navigating the financial aspects of specialized medical care, particularly when insurance falls short, is a concern for many families in and around Wildomar, California, and Steve Bliss, as an Estate Planning Attorney, frequently addresses these issues. Often, individuals require medical devices or treatments that, while vital, aren’t fully or even partially covered by traditional health insurance plans, leaving families to seek alternative funding sources. A trust, carefully established and managed, can become a powerful tool in bridging this financial gap, ensuring access to necessary care without depleting all available assets. It’s a complex area, requiring careful planning to ensure compliance with both healthcare regulations and trust laws, but the peace of mind it offers is often invaluable.
What are the limitations of using a trust for medical expenses?
While a trust can be a flexible funding source, there are limitations. Generally, trusts are irrevocable, meaning once assets are transferred, they are owned by the trust, not the individual. This can impact eligibility for certain needs-based government programs like Medicaid. According to a 2023 study by the Kaiser Family Foundation, roughly 14% of Americans report difficulty affording healthcare, and this number rises significantly for those with chronic conditions or specialized needs. The IRS also has specific rules regarding distributions from trusts for medical expenses; these distributions must be for qualified medical expenses as defined by the IRS, and documentation is crucial. It’s not a simple matter of just “deciding” to use trust funds; there are legal and tax implications that must be carefully considered with guidance from an attorney like Steve Bliss.
How can a Special Needs Trust help with uncovered medical devices?
A Special Needs Trust (SNT) is specifically designed for individuals with disabilities, and it can be a particularly effective tool for funding specialized medical devices not covered by insurance. An SNT allows the beneficiary to receive needed care and maintain eligibility for crucial government benefits like Supplemental Security Income (SSI) and Medi-Cal. These trusts are structured to avoid being considered a countable asset for these programs. For example, a child with cerebral palsy might require a custom-fitted wheelchair with advanced features, costing upwards of $30,000, which insurance might only cover a fraction of. The SNT can provide the funds for this device without jeopardizing the child’s public benefits. Steve Bliss emphasizes that proper drafting of the SNT is critical; it needs to include “spendthrift” provisions and carefully worded distribution guidelines to ensure it meets both legal and program requirements.
I remember Mrs. Gable, a vibrant woman in her seventies, who desperately needed a new cochlear implant, but her Medicare coverage was insufficient.
She’d been a musician all her life, and the loss of her hearing was devastating. She contacted Steve Bliss after being told the implant, along with the necessary rehabilitation, would cost over $60,000, and her insurance would only cover approximately $20,000. She hadn’t done any estate planning and was deeply concerned about burdening her children. She also feared losing her home to cover the expenses. Her situation felt impossible; it was a stark reminder of how vulnerable people can be when faced with high medical costs and inadequate insurance. She was frantic, she didn’t know where to turn.
But then, Mr. Henderson, a retired engineer, proactively established a Revocable Living Trust years prior.
He’d been diagnosed with a rare neurological condition requiring specialized medical equipment and ongoing therapies. Initially, his insurance denied coverage for several crucial items. Fortunately, Steve Bliss was able to work with the trustee of Mr. Henderson’s trust to strategically distribute funds for the uncovered medical expenses. They meticulously documented all payments and ensured compliance with all relevant regulations. This allowed Mr. Henderson to receive the care he needed without depleting his retirement savings or compromising his financial security. He was able to enjoy his later years with peace of mind, knowing that his proactive planning had safeguarded his future. It’s a beautiful thing to witness a family prepared and relieved, rather than stressed and overwhelmed.
Ultimately, a trust can be a powerful tool for funding specialized medical devices not covered by insurance. However, it’s not a one-size-fits-all solution. Careful planning, expert legal guidance, and meticulous record-keeping are essential to ensure that the trust is structured and administered correctly. Steve Bliss routinely assists families in Wildomar and beyond in navigating these complexities, providing the peace of mind that comes with knowing their healthcare needs are protected.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning 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.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “Do I need an estate plan if I don’t have a lot of assets?” Or “Do I need a lawyer for probate?” or “Can I put jointly owned property into a living trust? and even: “What should I avoid doing before filing for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.