Choosing the right trustee for a special needs trust is crucial for ensuring a loved one receives the care and financial support they need. The trustee’s role involves managing the funds and making decisions in the beneficiary’s best interest. To ensure success, it’s essential to understand the qualities and considerations involved in selecting a good trustee.
Look for experience and understanding
A trustee should have experience with managing finances, investments, and record-keeping. Knowledge of the specific needs of individuals with disabilities is also important. An ideal trustee understands government benefit programs, like Supplemental Security Income (SSI) and Medicaid, and how to manage the trust so that eligibility remains intact. If family members lack these skills, consider professional trustees, such as small trust companies or banks.
Consider reliability and trustworthiness
Reliability and trustworthiness are essential traits for a trustee. The trustee must act in the beneficiary’s best interest and make ethical choices regarding the trust’s funds. Choosing a responsible individual or company who can be depended upon to follow through on duties is critical. This person will handle sensitive decisions that impact the quality of life for the beneficiary.
Balance family ties with objectivity
Family members are often selected as trustees because of their close relationship with the beneficiary. This personal connection can help the trustee make informed decisions about care. However, it is also important that the trustee remains objective and makes decisions without emotional bias. Sometimes appointing a family member in a more limited role than trustee helps achieve the right balance between familiarity and expertise.
Understand the benefits of a professional trustee
Professional trustees, such as trust companies or banks, offer expertise and reliability. They understand regulations and manage trust assets according to legal requirements. While professional trustees charge fees, they provide consistency and avoid the emotional challenges that family members might face. Families should weigh these benefits against the costs when considering a professional trustee.
Choosing the right trustee can feel overwhelming, but focusing on the needs of the beneficiary and seeking the right balance of expertise and empathy will help ensure the right outcome.
