Opting for a Professional Trustee for a Special Needs Trust

Quite often, a settlor of a special needs trust will designate a close friend or family member as the trustee, and the trustee will later discover that he or she is unable to perform the duties of a trustee. Three reason why a settlor may consider hiring a professional trustee instead of designating a family member or friend as a trustee are below:

Time Commitment: Serving as a trustee for a special needs trust can be extremely time consuming. If the designated trustee will not have time to pay bills, monitor government benefits, help secure housing, pay for medical care, and serve as a liaison between the beneficiary and numerous service providers, then a professional trustee may be a better choice.

Know the Rules: A trustee for a special needs trust must keep track of and know the numerous government benefit rules to ensure that the beneficiary stays eligible for government benefits. A professional trustee will typically know the rules and already have experience using them.

Inter-Familia Complications: A cognitive and capable beneficiary of a special needs trust can pressure the trustee and put a strain on the trustee-beneficiary relationship. If the trustee is a family member or close friend, the beneficiary’s demands can cause inter-familial complications and arguments. These potential complications and strains can be avoided through the use of a professional trustee.

See Is It Time for a Professional Trustee?, Special Needs Answers, Nov. 2, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.