A special needs trust often serves as a lifeline for individuals with disabilities or impairing health conditions, making it essential based on the circumstances. Parents who establish these trusts for their children may need to choose another person to be a trustee, someone who can manage the assets in the trust appropriately.
They can consider other family members and relatives to take this position, but it might not always be the most beneficial. This role may become demanding, warranting financial expertise and working knowledge about the legalities surrounding the trust. It can be helpful to consider getting a corporate trustee in these situations.
Corporate trustees can be preferable because of their professional background in managing special needs trusts, offering the following advantages:
- They have extensive experience and knowledge regarding laws, including how these policies may apply from case to case.
- They can be more objective when deciding what to do with the assets in the trust, prioritizing the beneficiary’s welfare.
- They have less emotional ties to the beneficiary, allowing them to say no firmly to unreasonable requests.
Naming a family member as a trustee can also have benefits, such as having a better understanding of the beneficiary’s circumstances. However, being too attached can also be a pitfall that may eventually make the trust and the beneficiary suffer.
Setting up a trust to serve its purpose
People use trusts for various reasons, but there could be more riding on special needs trusts, such as meeting the beneficiary’s basic needs. Because of its purpose, it is best to seek legal counsel before creating this type of trust. Doing so can help you place legal safeguards and tailor the agreement so it can serve its purpose no matter how much time passes.