Families may fund a special needs trust to protect vulnerable loved ones. A trust can provide supplemental support when someone tries to live independently or after the death of their parents or caregivers.
A trustee must oversee trust resources and make appropriate distributions. All three of the factors below are important to consider when selecting a trustee to administer a special needs trust.
1. Their health and age
The trustor can potentially serve as the initial trustee, but they likely need to select someone who is young and healthy to take over the role eventually. Naming someone who is likely to live as long as, if not longer than, the beneficiary based on their age and health is typically a smart move.
2. Their proximity and availability
A trustee may be able to manage certain functions from a remote location. However, they can offer the best support when they live nearby. A trustee also needs to be readily available when there is a sudden demand for their support. People with demanding family circumstances or careers may not be in a position to fulfill the role as they should.
3. Their reliability and organization
Having access to trust resources can inspire misconduct. Some people might misappropriate trust resources for their personal benefits. Others might pull themselves to a high ethical standard but may lack the organizational skills necessary to manage resources, respond to distribution requests and document everything appropriately.
Selecting an appropriate trustee is critical for those funding a special needs trust. The trustee can serve as a long-term form of support for the beneficiary, and choosing the right candidate can influence how beneficial the trust ultimately is.
