A special needs trust (SNT) plays a crucial role for individuals with disabilities. It allows them to receive financial support without affecting their eligibility for government benefits. The trustee manages the trust’s funds, protects the beneficiary’s well-being, and ensures their needs are met.
What does a trustee do?
A trustee’s primary responsibility involves managing the assets in the special needs trust according to the trust document. The trustee ensures the funds go toward the beneficiary’s needs, such as medical expenses and education, while protecting their eligibility for benefits like Medicaid or SSI.
The trustee must also keep detailed records of all transactions, including income, disbursements, and investments. This role requires a combination of financial knowledge and compassion to secure the beneficiary’s future.
The trustee’s duties and responsibilities
A trustee must act in the best interests of the beneficiary and follow legal guidelines. The trustee regularly reviews the beneficiary’s needs to ensure proper fund usage. They consult with healthcare providers and other professionals to address these needs. The trustee must also make financial decisions that prioritize the beneficiary’s well-being and ensure compliance with laws to protect government benefits eligibility.
Who can serve as a trustee?
Choosing the right trustee matters. The trustee can be a family member, a close friend, or a professional. Family members who understand the beneficiary’s needs may be ideal, but professionals bring valuable experience in managing finances and understanding government benefit rules.
Trustee fees and compensation
Trustees receive compensation for managing the trust. The trust document usually outlines compensation, which can vary based on the trust’s size and complexity. The document should specify how the trustee’s fees will be paid.
Trustees play a critical role in making sure the special needs trust functions well. By understanding their duties, trustees help maintain the beneficiary’s well-being while meeting legal requirements.
