Setting up a special needs trust for a beneficiary with a mental or physical disability is a good idea to ensure that the beneficiary’s needs and livelihood are appropriately met, especially if governmental benefits change for the client.

Some create a special needs trust with personal injury awards won by the beneficiary or someone close to him or her. It is a good way to set money aside as a back-up plan, but needs to be very carefully overseen by a special needs trustee.

There are a variety of choices for who can serve as trustee, including a friend or family member, a private professional trustee, or a bank. Most importantly, the trustee must be a well-organized and honest person. He must have great business skills and good common sense and be willing and able, mentally and physically, to deal with interpersonal transactions and tasks. Some of the tasks may include making investments, dealing with legal taxes, and fulfilling accounting duties. This person must also know when and how to seek professional guidance, with respect to the trust, from a certified financial planner.

If there is not family or friend who can act as trustee, or if the trust is over a few hundred thousands dollars, considering a professional administrator to act s trustee may be a good idea.

The beneficiary or his or her spouse are not permitted to serve as beneficiary as they are viewed as one and the same by Medicaid and SSI. They are not allowed to distribute funds from the trust.

Does this person understand the beneficiary’s special needs and benefit programs thoroughly? Can they act in the best interest of the beneficiary? Do they have the time to handle all of the tasks included in the job of special needs trustee? Consider these questions when choosing.

Customer attorneys and special needs planning attorneys

What are other important things to consider when choosing a trustee?

Read more about choosing a special needs trustee herehere.