From the Attorney’s Desk

by Jason Krautkramer, J.D.

Eckert & Krautkramer, LLC

630 N 4th St. Wausau, WI 54403 715-842-0907 jason@eckerdawllc.com mailto:jason@eckerdawllc.com What a Special Needs Trust Cannot Pay For

The basic spending rule for Special Needs Trusts (SNTs) is that the funds are intended to supplement— not replace—needs-based government benefits.

SSI includes shelter costs as “in-kind support and maintenance” (ISM) and are part of its eligibility and benefit calculation. The following are ISM and generally shouldn’t be paid for by an SNT: rent or mortgage payments, condo and HO A fees, property taxes, and utilities such as water, gas, and electricity.

SSI benefits may be reduced if SNT funds are used for ISM. If an SSI beneficiary receives cash (or a cash equivalent such as a refundable gift card) from an SNT, their benefit may be reduced by one dollar for each dollar received, up to the point where they lose SSI completely. Losing SSI eligibility could also lead to losing Medicaid.

Next week I’ll discuss what an SNT can pay for.