What to Consider When Picking a Special Needs Trustee
A beneficiary with a mental or physical disability may receive governmental benefits, but if government support is reduced a special needs trust can ensure that the needs of the beneficiary are met.
Somebody besides the beneficiary, or his or her spouse, must oversee the special needs trust. This special needs trustee must be carefully chosen, and must be a honest and well-organized, as well as have good common sense and business skills. This person must be mentally and physically able to deal with all interpersonal tasks that arise with respect to the trust, including investments, legal taxes, accounting, and seeking assistance from a financial planner for financial advice.
Consider a responsible friend or family member, bank, or private professional trustee to oversee the trust. Make sure to ask these two questions when choosing the special needs trustee:
- Do they understand the beneficiary's special needs and governmental benefits in order to make appropriate decisions on behalf of him or her?
- Do they have the time to handle of the many tasks?
If a trust is large, particularly over a few hundred thousand dollars, or if there are no friends or family members to act as trustee, professional administration by a private professional fiduciary bank may be a good option. Special needs planning attorneys have knowledge about these professionals and can provide advice on the cost effectiveness of working with one.
If you choose to consult a special needs planning attorney, make sure to do so early on in the preparation of the trust, in order to make sure they are familiar with the beneficiary's situation, and that they are a proper fit.
What are other important things to consider when choosing a trustee?
Read more about choosing a special needs trustee herehere.
