Special needs trusts have been a way for disabled individuals to remain eligible for means-tested federal benefits. More institutional support is necessary to manage these funds; however, corporate fiduciaries are distancing themselves from this specialty. Four reasons for this move include increased litigation and regulatory issues; profitability concerns; lack of experience; and lack of time and resources. In order to alleviate these concerns, fiduciaries should start expanding their education through conferences and CLEs. Further, attorneys should ensure that their fiduciary referrals are informed, looking for expertise to navigate legal and regulatory issues.
See Peter J. Johnson, Corporate Fiduciaries Are Shying Away from Special Needs Trusts, Wealth Management, November 15, 2016.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
