The question of whether a trust can pay for technology used to track treatment adherence is increasingly relevant as healthcare evolves and incorporates more digital monitoring solutions; the answer is generally yes, but it requires careful consideration of the trust document, applicable state laws, and the specific circumstances of the beneficiary and the technology in question.
What are the permissible uses of trust funds?
Trust documents outline what constitutes permissible distributions; typically, these include expenses that benefit the beneficiary, covering health, education, maintenance, and support. Technology aimed at improving health outcomes, such as devices that monitor medication adherence or track vital signs, generally falls within these categories, provided the trustee exercises reasonable prudence. It’s estimated that non-adherence to medication regimens costs the US healthcare system around $300 billion annually; therefore, tools promoting adherence can demonstrably improve health and potentially reduce long-term costs. However, the trustee must be able to justify the expense as being in the best interest of the beneficiary, ensuring it’s a reasonable and necessary healthcare-related cost. The trustee’s fiduciary duty requires them to act with utmost good faith and prudence when making distribution decisions.
How does HIPAA impact trust distributions for health tech?
The Health Insurance Portability and Accountability Act (HIPAA) is crucial when considering health-related tech funded by a trust; while the trust itself isn’t directly covered by HIPAA, the data generated by the technology is. The beneficiary must provide proper authorization for the sharing of their health information with the trustee or any third-party service provider involved in managing the technology. Without valid HIPAA authorization, the trustee could face legal repercussions. Consider the case of old Mr. Henderson, a widower who struggled to remember his heart medication. His daughter, acting as trustee, wanted to use a smart pill dispenser that tracked usage and sent alerts. Initially, she proceeded without obtaining proper authorization, and the tech company flagged a privacy violation – a costly mistake that delayed implementation and required legal intervention. Approximately 20% of hospital readmissions are linked to medication non-adherence, highlighting the importance of these technologies but also the need for careful compliance.
What happens if a beneficiary objects to tech monitoring?
A beneficiary’s wishes regarding their care and privacy are paramount; if a beneficiary objects to the use of technology for monitoring, the trustee must carefully consider their objections. Unless the trust document specifically overrides the beneficiary’s wishes – which is rare and often subject to legal challenge – the trustee generally cannot force the use of the technology. The trustee must balance the potential benefits of the technology with the beneficiary’s right to autonomy. I once worked with a client whose father, a staunch believer in personal privacy, refused to wear a fall detection device despite a history of falls; the daughter, as trustee, ultimately respected his wishes, focusing instead on home modifications to reduce fall risks. This situation underscores that respecting the beneficiary’s autonomy is as important as providing for their well-being, as roughly 37% of seniors experience falls each year, leading to significant injury and healthcare costs.
Can a trust cover the ongoing costs of this technology?
Beyond the initial purchase, a trust can absolutely cover ongoing costs associated with adherence technology, such as data subscription fees, software updates, and technical support. The trust document should clearly define whether ongoing expenses are permissible and outline any limitations. It’s crucial to establish a clear budget and track expenses to ensure the trust funds are used responsibly. I recall a situation where a client established a trust for her mother, who suffered from Alzheimer’s; they implemented a GPS tracking device and a medication dispenser, budgeting for the monthly subscription fees within the trust. This proactive approach provided peace of mind, knowing her mother was safe and receiving her medication consistently. With the projected increase in the aging population, and the rise in chronic conditions, proactive health management using these tools will become increasingly important, with projections showing a 75% increase in demand for remote patient monitoring by 2025.
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About Steve Bliss at Escondido Probate Law:
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