Choosing a Good Special Needs Trustee
A special needs trust can be created to ensure that a beneficiary with a mental or physical disability will have access to property that supports his or her livelihood, in the case that governmental benefits are lost.
Sometimes a personal injury award, won by the beneficiary or someone close to him or her, can be funneled into a special needs trust. This fund will then act as a financial protection for the beneficiary, but needs to be overseen by a special needs trustee.
Choose Your Special Needs Trustee Carefully
There are a variety of options when to comes to choosing a trustee. It can be a responsible friend or family member, a bank, or a private professional trustee. Neither the beneficiary nor his or her spouse are eligible to serve as special needs trustee, as they are viewed as one and the same by Medicaid and SSI, and are not allowed to distribute the trust.
Consider that the trustee chosen must be honest, well organized, have good common sense, have exceptional business skills, and must be mentally and physically able to deal with any issues that arise during administration, such as investment, legal taxes, and accounting. It is important that the trustee know when and how to seek professional assistance from a certified financial planner, should he or she need advice about the trust.
There are two important questions to as when choosing a special needs trustee: Do they understand the beneficiary's special needs and government benefit programs well in order to act in the client's best interest? Do they have the time to followthrough with all of the tasks regarding the trust that will arise?
Can you think of other important things to consider when choosing a trustee?
Read more about choosing a special needs trustee herehere.
