Navigating the financial aspects of long-term care, especially concerning mobility equipment, is a common concern for many families, and a revocable living trust can offer significant flexibility in addressing these ongoing costs. While a trust isn’t a magic solution, it provides a structured way to manage assets for the benefit of a loved one, even for expenses that arise over many years. The ability for a trust to cover upgrades to mobility equipment—like transitioning from a basic wheelchair to a more advanced power chair with customized features—depends heavily on how the trust is drafted, funded, and administered. Approximately 54 million Americans—over 18% of the population—have a disability, and many rely on assistive devices that require periodic updates or replacements, making this a vital consideration for estate planning.
What are the limitations on using trust funds for ongoing care?
Generally, a trust document will outline permissible distributions, and these can be broadly or narrowly defined. A well-drafted trust should explicitly allow for distributions to cover the beneficiary’s “health, education, maintenance, and support,” which is typically interpreted to include necessary medical expenses and assistive devices. However, the trustee has a fiduciary duty to act prudently and in the beneficiary’s best interest. This means they can’t simply approve any request; they need to evaluate whether the upgrade is genuinely necessary and reasonable in cost. For example, a top-of-the-line power chair with every available feature might be deemed excessive if a more affordable model would adequately meet the beneficiary’s needs. It’s also critical to remember that trust assets are generally protected from creditors, but frivolous or unnecessary spending could potentially jeopardize that protection.
How does a trust differ from Medicaid when covering equipment costs?
Many assume that Medicaid is the primary answer for covering long-term care costs, including mobility equipment. However, Medicaid eligibility often requires spending down assets, meaning the individual must deplete their savings before qualifying. A trust, particularly an irrevocable trust established well in advance of needing care, can preserve assets while still providing for the beneficiary’s needs. While Medicaid has strict income and asset limits—as of 2023, the asset limit for single individuals in California is $2,000—a trust allows for more flexibility. It’s important to understand that attempting to transfer assets into a trust shortly before applying for Medicaid could be viewed as an attempt to shield assets and could result in a period of ineligibility. The complexity of both systems often necessitates expert legal guidance.
What happened when Mrs. Gable didn’t plan ahead?
I remember working with the Gable family, a truly heart-wrenching situation. Mr. Gable, a vibrant man in his 70s, suffered a stroke that significantly impacted his mobility. He hadn’t established a trust or any formal estate plan, and his wife, overwhelmed with his care, found herself facing mounting medical bills and the need for increasingly sophisticated mobility equipment. Initially, they relied on a basic wheelchair covered by insurance, but as his condition progressed, he needed a power chair with customized seating to prevent pressure sores. The cost was substantial—over $10,000—and Mrs. Gable struggled to afford it. They had to rely on the kindness of friends and family to help raise funds, a deeply stressful and emotionally draining experience. Had they established a revocable living trust years prior, a portion of their assets could have been earmarked for such unforeseen needs, providing financial peace of mind during a difficult time. Approximately 62% of Americans have a will, but only 36% have a trust which leaves a great deal of vulnerability.
How did the Hernandez family ensure their father’s care?
The Hernandez family took a different approach. Years ago, they worked with our firm to establish a revocable living trust, specifically outlining provisions for long-term care. When their father, Miguel, began experiencing increasing difficulty with mobility due to arthritis, the trust funded the purchase of a power wheelchair and, later, upgrades to a model with improved features and a more comfortable seating system. The trustee, Miguel’s daughter, carefully reviewed the recommendations from his physical therapist and approved the upgrades, knowing the funds were available and the purchases were in his best interest. The process was seamless, relieving the family of significant financial strain and allowing them to focus on providing emotional support and quality care. The Hernandez’s had the foresight to fund the trust adequately and update it regularly, ensuring it would continue to meet their father’s evolving needs, a best practice we always recommend. It’s a testament to the power of proactive planning, and it illustrates how a trust can truly provide security and peace of mind for both the beneficiary and their loved ones.
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About Steve Bliss at Escondido Probate Law:
Escondido 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 Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
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
banckruptcy attorney
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “Are there ways to keep my estate private after I pass away?” Or “How can joint ownership help avoid probate?” or “Will my bank accounts still work the same after putting them in a trust? and even: “What is reaffirmation in bankruptcy and should I do it?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.