Individuals with disabilities are often able to travel and take vacations. A special needs trust can pay for vacations, but there are different rules that apply to third-party special needs trusts as opposed to first-party special needs trusts with respect to these payments.
This means that, generally, distributions can only be made for the benefit of the beneficiary. If others receive an incidental benefit, they must pay their pro rata share. One way for a trust to pay incidental vacation expenses is for the trust to pay the provider directly. This works very well where the resort is an all-inclusive arrangement. The other way to pay for incidental expenses is to have a co-traveler pay these expenditures and reimburse them from the trust.
There are a number of issues that arise with respect to trust payments for vacations for the disabled beneficiary. It is often difficult, if not impossible, for an individual with disabilities to travel alone. The issue arises as to whether the trust can pay for other family members to join the beneficiary on the vacation. The Social Security Administration SSA has taken the position, with respect to self-settled trusts, that the trust can only pay for a skilled health careβtrained professional if a travel companion for the beneficiary is necessary.
He simply needs someone to push his wheelchair or perform other non-professional tasks. The trustee must determine whether the vacation is too expensive. If funds are expended too rapidly for vacations or any other purposes, the funds may be exhausted prematurely. Factors to be considered in determining whether the expenses of a vacation are appropriate would be whether the beneficiary requires first-class air travel because of a need to spread out and proximity to restrooms.
Handicap vans are often expensive, but may be an absolute necessity. Expenses can be controlled by avoiding expensive hotels and restaurants. The trustee should require receipts for all purchases. If possible, credit cards might be considered. The value of a ticket for domestic travel received by an individual or spouse is not a resource if the ticket is:.
