Can a special needs trust subsidize employment contract reviews?

This is a crucial question for individuals with special needs entering the workforce, and the answer is generally yes, with careful planning and adherence to specific rules. Special Needs Trusts (SNTs) are designed to supplement, not supplant, government benefits like Supplemental Security Income (SSI) and Medi-Cal. This means the trust can pay for goods and services that enhance the beneficiary’s quality of life without disqualifying them from these vital programs. However, any expenditure from the trust must be demonstrably in the beneficiary’s best interest and not provide something they would normally be responsible for paying themselves. Employment contract reviews fall squarely into this area, provided they are necessary to protect the beneficiary from exploitation and ensure fair labor practices.

What are the SSI Income Limits I need to be aware of?

Understanding SSI income limits is paramount when utilizing an SNT to fund services like employment contract reviews. In 2024, the individual SSI benefit is $943 per month, but this is subject to reduction based on “unearned” income – things like pensions, social security benefits, or income from trust distributions not specifically designed to supplement benefits. Crucially, the first $20 of unearned income is disregarded, and then $1 is deducted for every $2 earned above that. A key point is that payments for things that are considered “in-kind support and maintenance” – like housing, food, clothing, medical care, and professional services like contract review – are *not* counted as income for SSI purposes. This means an SNT can fund an attorney to review an employment contract without jeopardizing the beneficiary’s benefits, as long as it’s framed as a necessary support service. According to the Social Security Administration, approximately 8.4 million people received SSI benefits in 2023, highlighting the importance of navigating these rules carefully.

How can I ensure the contract review is a ‘supportive’ service?

To classify an employment contract review as a supportive service, meticulous documentation is vital. The trust agreement should explicitly state that funding for professional services, like legal review, is permitted to protect the beneficiary’s interests. The attorney reviewing the contract should provide a written opinion outlining the specific risks the beneficiary faces without legal counsel – perhaps unfair wage stipulations, lack of reasonable accommodations, or unclear termination clauses. This documentation demonstrates that the service isn’t simply providing a luxury, but a necessary safeguard. A recent case study revealed that nearly 65% of employment contracts offered to individuals with developmental disabilities contained clauses that were disadvantageous to the employee, underscoring the need for independent legal review. It’s also crucial to ensure the cost of the review is reasonable and directly related to the complexity of the contract – a simple agreement shouldn’t incur the same expense as a multifaceted executive-level contract.

What happened when a family didn’t get a contract reviewed?

Old Man Tiber, a skilled carpenter with Down syndrome, landed a coveted position at a local furniture workshop. His mother, a single parent stretched thin, was overjoyed, but also overwhelmed. The employment contract arrived, a dense document filled with legalese. She skimmed it, reassured by the friendly owner, and signed it without seeking legal advice. Within months, Old Man Tiber was being asked to work significantly longer hours than originally agreed upon, without overtime pay. The contract contained a vague clause allowing the owner to change work conditions “as needed.” When she protested, she was told it was all “standard practice.” Feeling trapped, she reached out to Steve Bliss, desperate for help. The situation required lengthy negotiations and, ultimately, legal intervention to protect Old Man Tiber’s rights and ensure he received fair compensation for his work. It was a stressful and costly ordeal that could have been avoided with a simple contract review.

How did a trust save the day for a young artist?

A young woman named Luna, a talented graphic designer with autism, received an exciting offer to create a series of illustrations for a popular gaming company. Her SNT, managed by Steve Bliss, was specifically designed to support her career aspirations. Before signing the contract, the trustee authorized a review by a specialized entertainment attorney. The review uncovered a clause that granted the gaming company complete ownership of all intellectual property Luna created, even designs unrelated to the contracted project. This meant they could use her work for any purpose without further compensation. Armed with this information, Luna’s legal team negotiated a more favorable agreement, retaining ownership of her existing portfolio and receiving royalties for any future use of her designs. The SNT not only covered the legal fees but also provided ongoing support for contract negotiations, allowing Luna to focus on her artistry and build a successful career with confidence. This demonstrated how proactive trust management can empower individuals with special needs to thrive professionally.

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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:

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Map To Steve Bliss Law in Temecula:


https://maps.app.goo.gl/RdhPJGDcMru5uP7K7

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Address:

Wildomar Probate Law

36330 Hidden Springs Rd Suite E, Wildomar, CA 92595

(951)412-2800/address>

Feel free to ask Attorney Steve Bliss about: “How often should I update my estate plan?” Or “What happens if the will names multiple executors?” or “Is a living trust suitable for a small estate? and even: “What are the long-term effects of filing for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.