A Special Needs Trust (SNT) is set up for a person with a mental or physical disability. The main purpose is to provide support for a disabled loved one without jeopardizing their ability to receive governmental assistance.
The SNT is for the benefit of the beneficiary. The listed items payable from the SNT are for the beneficiary only (with the exception of accompanying companions and respite care). It is recommended you keep a folder full of receipts of all transactions made from the SNT.
Michigan has strict rules regarding how trust money is spent. If these rules are broken, the beneficiary risks losing eligibility for means-based governmental assistance.
Expenses Payable from the Special Needs Trust
Medical
- Acupuncture or acupressure
- Elective surgery
- Hearing aids and batteries
- Massage
- Over-the-counter medications (vitamins and supplements)
- Physician specialist
- Private counseling
- Care management services
Well-Being
- Appliances (TV, DVD, stereo, microwave, stove, refrigerator, washer and dryer)
- Athletic club membership
- Books and magazines
- Clubs and club dues
- Day care for minor or disabled trust beneficiary (generally not for beneficiary's children)
- Education: academic or recreational
- Fitness equipment
- Musical instruments (including lessons)
Needs
- Bottled water
- Clothing
- Haircuts/salon services
- Insurance (cars, home and/or possessions)
- Utility bills (phone, internet, cable, television)
- Non-food grocery items (laundry soap, bleach, fabric softener, dish soap, hand and body soap, personal hygiene products, paper towels, napkins, etc.)
- Personal supplies (shampoo, deodorant, toothbrush/paste, etc.)
Other
- Attorney legal fees
- Babysitting for beneficiary
- Bus pass/public transportation (Uber, Lyft, cabs, etc.)
- Swimming pool
- Gas for vehicle
- Pet/pet supplies
- Repair services (appliance, vehicle, bicycle, household)
- Retail store charge accounts
- Computer, software, hardware, programs, internet
- Curtains, blinds, drapes, linens and towels
- Dry cleaning/laundry services
- Furniture, home furnishings
- Recreation (movies, sporting events — but not meals)
- Respite care
- Sporting goods/equipment
- Tickets to concerts or events (for the beneficiary and anyone accompanying them)
- Transportation (vehicle, moped, bicycle)
- Travel
- Vacation
Do NOT Pay from the SNT:
- Food and housing
- Spending cash for the beneficiary
