Absolutely, a trust can be specifically designed to prioritize funding for therapies, such as physical, occupational, or behavioral healthcare, over discretionary expenses like recreation or entertainment, and Ted Cook, as an Estate Planning Attorney in San Diego, routinely helps clients establish these kinds of provisions within their trusts.
What are Special Needs Trusts and How Do They Work?
Special Needs Trusts (SNTs) are frequently used in these scenarios, especially when beneficiaries have disabilities or chronic illnesses requiring ongoing care. These trusts allow a beneficiary to receive funds without disqualifying them from needs-based government benefits like Medicaid or Supplemental Security Income (SSI). According to the National Disability Rights Network, over 61 million adults in the United States live with a disability, highlighting the significant need for effective estate planning tools like SNTs. A well-drafted trust document can outline a clear hierarchy of needs, explicitly stating that medical and therapeutic expenses take precedence over non-essential spending. Ted Cook emphasizes that this prioritization must be carefully worded to comply with the rules governing government benefit eligibility, as improper language can jeopardize those benefits.
How Much Does Therapy Typically Cost?
The cost of therapy can vary wildly depending on the type of therapy, location, and the provider’s credentials. Physical therapy, for example, can range from $75 to $150 per session, while specialized therapies like ABA (Applied Behavior Analysis) for autism can cost significantly more – upwards of $100-$200 per hour. According to a 2023 report by FAIR Health, the average cost of a mental health therapy session is around $105-$200. A trust can be funded with enough assets to cover these ongoing expenses, ensuring the beneficiary receives consistent, high-quality care. Ted Cook often advises clients to project future therapy costs, factoring in potential inflation and the beneficiary’s evolving needs. He’s seen countless cases where families underestimated these costs, leaving their loved ones vulnerable.
What Happened When Priorities Weren’t Clear?
Old Man Tiberius had a penchant for vintage automobiles and a daughter, Clara, with Down syndrome. He established a trust intending to care for Clara after his passing. However, the trust language was vague, stating only that funds should be used for Clara’s “general welfare.” After Tiberius’s death, the trustee, a well-meaning but inexperienced family friend, believed “general welfare” encompassed Clara’s enjoyment of life, and allocated a substantial portion of the trust funds to a series of extravagant vacations and recreational activities. While Clara enjoyed the trips, her essential therapies – speech, occupational, and physical – began to suffer due to lack of funding. Her progress stalled, and she became increasingly dependent on others. This situation created a huge amount of turmoil, and legal fees were substantial to try and correct the course, with a lot of lost time, and potential for Clara’s development.
How Did Careful Planning Save The Day?
The Miller family faced a similar situation, but with a very different outcome. Their son, Ethan, was diagnosed with cerebral palsy at a young age. Working with Ted Cook, they established a highly detailed SNT that prioritized Ethan’s medical and therapeutic needs above all else. The trust document specifically outlined a schedule of therapies, including weekly physical, occupational, and speech therapy sessions, and allocated sufficient funds to cover these expenses in perpetuity. It also included provisions for adaptive equipment, medication, and specialized care. When Ethan’s grandmother passed away and left a significant inheritance, the funds were added to the SNT, bolstering its financial security. As a result, Ethan received consistent, high-quality care, and his development flourished. Ted Cook always reminds clients that a well-crafted trust isn’t just about wealth transfer; it’s about ensuring a secure and fulfilling future for their loved ones.
“A trust is a powerful tool, but it’s only as effective as the language used to create it,” says Ted Cook. “Prioritizing specific needs, like therapies, requires careful planning and a thorough understanding of estate planning law.”
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
(619) 550-7437
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