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| Overview | Self-Settled & Third Party Trusts |
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| Selecting the Right Trustee | Assisting the Trustee |
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| Trust Distributions |
Selecting the Right Trustee
A trustee is the person responsible for managing, investing, and distributing a trust’s funds. Selecting the right trustee – one who is reliable and will act in the best interests of the trust beneficiary – is one of the most important considerations when establishing a special needs trust. A trustee should be someone who can manage finances, someone who understands both the special needs of the beneficiary as well as the public benefit rules, and someone who will act as a strong advocate for that beneficiary.
How to Select a Trustee
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FAMILY MEMBER |
CORPORATE OR PROFESSIONAL TRUSTEE |
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| Pro: When a close family member acts as trustee, they are more likely to understand the beneficiary’s physical and psychological needs and usually provide stronger advocacy than a third party. This is the least expensive option. |
Pro: A professional trustee has the expertise and resources to offer wise investment options and will understand the unique issues that arise. |
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| Con: A family member may not be able to say “no” to a beneficiary’s repeated requests for spending money. The trustee’s payments to satisfy these requests could jeopardize the state assistance that the trustee is required to preserve. A family member may not have the necessary money management skills and public benefits expertise, and may make mistakes that could cause the loss of trust funds or public benefits, or both. |
Con: Corporate trustees can be expensive and are sometimes not familiar with the beneficiary’s important day-to-day needs. |
Appointing a close family member and a professional trustee as co-trustee to share the responsibilities and fiduciary duties may provide you with the most reliable trust management.
copyright © Kearns & Kearns 2005