Important Issues For Trustees

Taking on the role of Trustee of a Special Needs Trust or Supplemental Needs Trust is an important responsibility. It is a Trustee’s duty to manage trust funds with careful discretion and disburse the funds for the sole benefit of the Beneficiary. The Trustee has the additional responsibility of seeing that the trust funds are properly invested and protected. Considering the scope of the undertaking, there are a few things potential Trustees should consider before accepting the role.

First, make sure that you have the opportunity to read the trust agreement and learn the specific duties unique to the trust nominating you as Trustee, such as what sorts of expenditures can be funded with trust assets, what are the legal responsibilities and duties you assume in the Trustee role, and whether the Trust provides for financial compensation for your role as Trustee. In addition, you should also establish the Grantor’s objective for creating the trust, the personal goals that you can help the Beneficiary achieve while you serve as Trustee, and how long your services as Trustee will be needed. Finally, taking time to become familiar with the Beneficiary’s needs, habits, and preferences is very important since it is the Trustee’s job to provide distributions to meet the Beneficiary’s supplemental needs.

If you are nominated as the Trustee in a Special Needs Trust or Supplemental Needs Trust, it is a good idea to consult with the attorney who drafted the trust agreement so the ins and outs of your duties may be fully clarified. As drafters of the trust, attorneys are ultimately your best source of answers for your preliminary questions. Keep in mind that it is important to be honest with yourself as you consider becoming a Trustee. If the trust agreement is unavailable for your review or if you do not feel that you have the time to undertake the Trustee role, it is wise to reconsider for your own good and the good of the Beneficiary.

What our clients are saying

Our affiliations