True or False: Funds in a special needs trust for a disabled person can be used for items not covered under Medicare and for guardian or attorney fees.

The statement is true because funds in a special needs trust can indeed be utilized for a wide range of expenses that enhance the quality of life for the individual with disabilities. This includes items not covered by Medicare, such as certain medical expenses, therapies, personal care services, and recreational activities.

Additionally, it is permissible for a special needs trust to pay for guardian or attorney fees, as long as the expenditures serve the best interests of the beneficiary and do not jeopardize their benefits under government programs. These arrangements are designed to ensure that individuals with disabilities can receive necessary services and maintain their quality of life without losing eligibility for essential benefits.

In this context, the special needs trust is a crucial financial tool that offers flexibility in managing resources, while ensuring that the individual’s safety nets provided by government programs like Medicare remain intact.