Certified Financial Planner (CFP) Practice Exam

Management fees of a special needs trust are not considered a medical expense for a special needs individual because they do not directly relate to medical care or treatment. Medical expenses, as defined for various purposes including tax deductions and eligibility for certain benefits, typically involve costs associated with medical and dental care, treatment, or services related to the individual’s health condition.

Moving or modifying electrical outlets may be necessary for ensuring safety and accessibility, which can be considered part of medical expenses depending on the circumstances. Tuition for attendance at a special needs school is often covered under educational expenses, but it can also be pertinent if it directly addresses a medical need tied to the individual’s disability. Admission and transportation to a medical conference may be justified as related to medical education and support, making it a relevant expense as well.

In contrast, management fees for a special needs trust are administrative costs associated with overseeing the trust's assets and ensuring proper fund disbursement, rather than direct costs incurred for medical care or disability management. Therefore, they fall outside the definition of a medical expense.