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 health management, and the answer, like many in estate planning, isn’t a simple yes or no—it depends on the trust document itself, state laws, and the specific circumstances.
What are the limitations on trust distributions?
Generally, a trust document will outline permissible distributions to beneficiaries, often categorized as for “health, education, maintenance, and support.” Biometric devices—think smartwatches tracking heart rate, continuous glucose monitors, or even sleep apnea monitors—fall into a grey area. If the trust instrument is broadly worded, covering general health expenses, there’s a strong argument for allowing these purchases. However, a narrowly tailored trust might only permit payments for “necessary medical care,” potentially excluding preventative or lifestyle-focused devices. According to a 2023 study by the National Center for Health Statistics, approximately 38% of adults aged 65 and older utilize some form of wearable health technology, demonstrating a growing demand for these tools. This shift necessitates a reevaluation of traditional trust language to accommodate modern healthcare trends.
What if the trust document is silent on technology?
If the trust document doesn’t mention technology specifically, the trustee must exercise reasonable prudence and act in the best interest of the beneficiary. This is where things get tricky. A trustee might consider factors like the beneficiary’s health condition, the potential benefits of the device, and the cost relative to the trust’s assets. Consider a situation where an elderly beneficiary has a history of falls. A smartwatch with fall detection could be a justifiable expense, potentially preventing serious injury and reducing long-term healthcare costs. However, a high-end fitness tracker solely for tracking steps might be deemed an unnecessary luxury. It’s estimated that falls account for over 37% of all injury-related deaths among seniors, highlighting the importance of preventative measures like fall detection technology.
I remember old Mr. Abernathy…
Old Mr. Abernathy had a trust set up years ago, fairly standard language focused on “medical expenses.” His daughter, Sarah, was a health enthusiast and wanted to use trust funds to purchase a top-of-the-line continuous glucose monitor, even though he didn’t have diabetes, simply to “optimize his health.” The trustee, understandably hesitant, initially denied the request. A legal battle ensued, costing the trust thousands in attorney’s fees. It turned out the trust language, while seemingly comprehensive, didn’t explicitly cover preventative health measures. Sarah felt her father deserved the best, but the rigid structure of the trust hindered her efforts. The judge ultimately sided with the trustee, emphasizing the importance of adhering to the trust document’s intent.
How can a trust be future-proofed for health technology?
Fortunately, my client, Mrs. Eleanor Vance, understood the need for flexibility. When drafting her trust, we included a clause specifically addressing “health-related technology,” defining it broadly to encompass devices and services used for monitoring, maintaining, or improving health and well-being. We even included a provision allowing the trustee to seek expert advice from healthcare professionals to determine the appropriateness of such purchases. A few years later, Eleanor was diagnosed with early-stage Alzheimer’s. Her son, the trustee, was able to seamlessly use trust funds to purchase a GPS tracking device and a smart home system with voice-activated reminders – providing Eleanor with increased safety and independence. This scenario demonstrated the power of proactive estate planning and the importance of adapting trust language to accommodate evolving healthcare needs. Approximately 6.7 million Americans are currently living with Alzheimer’s disease, and that number is projected to rise dramatically in the coming decades, reinforcing the need for innovative solutions and flexible estate planning tools.
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