The question of whether a trust can pay for biometric devices for health monitoring is becoming increasingly common as technology advances and individuals prioritize proactive healthcare. Ted Cook, a trust attorney in San Diego, frequently encounters this query. The answer, as with many trust-related matters, isn’t a simple yes or no. It hinges on the specific language of the trust document, the beneficiary’s needs, and applicable laws. Generally, a trust can pay for expenses that benefit the beneficiary and align with the grantor’s intent. However, the increasing complexity of these devices necessitates careful consideration and documentation. Approximately 65% of adults over 65 report having at least one chronic condition, making health monitoring devices potentially vital for maintaining quality of life, and justifying trust expenditures when appropriate.
What Expenses Does a Trust Typically Cover?
Traditionally, trusts are used to cover essential needs like housing, food, medical care, and education. These are often explicitly stated within the trust document. However, the definition of “medical care” is evolving. While covering doctor visits and prescriptions is standard, the inclusion of preventative or monitoring devices like smartwatches tracking heart rate or continuous glucose monitors requires interpretation. Ted Cook emphasizes the importance of looking beyond just the ‘four corners’ of the document – the explicit terms – and considering the overall purpose the grantor intended. “The grantor’s intent is paramount,” he explains, “If the grantor valued proactive health management, a strong argument can be made for covering these devices.” The key is demonstrating that the device is medically necessary or significantly improves the beneficiary’s well-being, aligning with the trust’s purpose.
Is a Biometric Device Considered ‘Medical Care’?
The categorization of a biometric device as ‘medical care’ can be nuanced. Devices like basic fitness trackers are less likely to be covered, as they primarily focus on general wellness. However, devices that collect data used by a physician to manage a condition – such as a heart rate monitor for someone with arrhythmia or a device tracking sleep apnea – are more likely to qualify. According to a recent study, the global biometric sensors market is projected to reach $25.1 billion by 2028, highlighting the growing prevalence and sophistication of these technologies. Ted Cook suggests obtaining a letter from the beneficiary’s physician explicitly stating the medical necessity of the device and how the collected data will be used for treatment. This documentation is crucial for justifying the expense to potential beneficiaries or trust investigators.
What Happens if the Trust Doesn’t Explicitly Allow for These Expenses?
If the trust document doesn’t specifically mention biometric devices, the trustee must exercise reasonable prudence and discretion. This means carefully weighing the benefits of the device against its cost and potential risks. The trustee must also consider whether the expense aligns with the grantor’s overall intentions and the beneficiary’s best interests. If there’s any doubt, seeking legal counsel, like Ted Cook, is highly recommended. Furthermore, the trustee needs to keep detailed records of the decision-making process, including any medical documentation, cost comparisons, and justifications for the expense. “Transparency is key,” emphasizes Cook. “A well-documented decision is much easier to defend if challenged.”
A Case of Unforeseen Complications
Old Man Hemlock was a creature of habit. A retired shipbuilder, he built his trust to ensure his granddaughter, Clara, received the best possible care as she aged. Clara had a history of unpredictable blood sugar levels, but the trust, drafted decades ago, only covered ‘traditional medical expenses’. When Clara’s doctor recommended a continuous glucose monitor, the trustee, Uncle Silas, balked. He worried it wasn’t ‘real’ healthcare, just a fancy gadget. Silas, a man who saw the world in black and white, refused to approve the purchase, fearing accusations of mismanagement. Clara’s health began to suffer, resulting in a frightening incident where she lost consciousness due to a severe drop in blood sugar. Her mother, furious, threatened legal action. The situation spiraled, creating tension within the family and a potential breach of the trustee’s fiduciary duty.
How a Proactive Approach Saved the Day
Thankfully, Clara’s mother, realizing the impasse, sought counsel from Ted Cook. Cook carefully reviewed the trust document and, recognizing the grantor’s clear intention to provide for Clara’s well-being, advised a proactive approach. He helped draft a detailed letter outlining the medical necessity of the glucose monitor, its potential to prevent dangerous episodes, and its alignment with the trust’s overall purpose. Cook then facilitated a meeting between the trustee, Clara’s mother, and Clara’s doctor to present the information. The trustee, seeing the clear medical justification and understanding the grantor’s intent, ultimately approved the purchase. Clara’s health stabilized, and the family found peace of mind. “It wasn’t just about the device,” Cook explained, “It was about communication, documentation, and understanding the spirit of the trust.”
What Documentation is Needed for Trust Approval?
To secure trust approval for biometric devices, several documents are crucial. First, a letter from the beneficiary’s physician detailing the medical necessity of the device and how the data will be used for treatment. Second, a cost comparison of different devices and vendors. Third, a clear explanation of how the device aligns with the trust’s purpose and the grantor’s intent. Fourth, documentation of the trustee’s due diligence, including any research conducted and consultations with legal or medical professionals. Finally, maintain receipts and records of all expenses related to the device. According to recent surveys, approximately 70% of trustees report challenges in navigating complex medical expenses, highlighting the importance of thorough documentation.
Can Trustees Be Held Liable for Denying a Necessary Device?
Yes. Trustees have a fiduciary duty to act in the best interests of the beneficiary. Denying a medically necessary device could be considered a breach of that duty, potentially exposing the trustee to personal liability. If a beneficiary suffers harm as a result of the trustee’s denial, they could pursue legal action to recover damages. Ted Cook stresses the importance of erring on the side of caution. “If there is a legitimate medical justification for the device, and denying it could harm the beneficiary, the trustee should approve the expense.” He also recommends obtaining liability insurance to protect against potential claims. The increasing complexity of healthcare technology necessitates proactive risk management for trustees.
Who Is Ted Cook at Point Loma Estate Planning Law, APC.:
Point Loma Estate Planning Law, APC.2305 Historic Decatur Rd Suite 100, San Diego CA. 92106
(619) 550-7437
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