This article is provided by Andrea Metcalf, Director of Trust Services for Legacy Enhancement Trust in Monaca, Pennsylvania. Legacy Enhancement is a supporter of the Special Needs Alliance and a Sponsor for our member meetings.

A critical decision for families establishing a Special Needs Trust (SNT) is the choice of trustee. While some may appoint a family member, many opt for a professional trustee due to the specific expertise required in managing these trusts.

What is a Professional Special Needs Trust Trustee?

A professional special needs trust trustee can be an individual or a corporate entity, such as a trust company or nonprofit organization, experienced in overseeing special needs trusts.

The trustee’s primary role is to administer the trust and ensure funds are used to enhance the beneficiary’s quality of life without affecting their eligibility for essential needs-based benefits. Common duties include:

Financial Management and Investment Oversight: A professional trustee ensures that the trust’s funds are managed wisely. They often collaborate with investment advisors to grow the trust’s assets responsibly, ensuring long-term sustainability.

Legal and Regulatory Compliance: Special needs trusts must adhere to strict legal requirements. The professional trustee ensures compliance with federal and state laws, including filing necessary tax returns and maintaining the trust’s good standing.

Disbursement of Funds: Trustees handle disbursements carefully, ensuring they do not jeopardize the beneficiary’s access to critical government assistance like SSI and Medicaid. SNT funds can cover expenses that improve the beneficiary’s quality of life, such as medical care not covered by Medicaid, adaptive medical equipment, home and vehicle modifications, and recreation.

Record Keeping and Reporting: Trustees maintain detailed records of all trust transactions, providing necessary reporting to relevant parties, including family members or legal guardians, courts, and government agencies.

Advocacy and Coordination of Care: Many professional trustees also act as advocates for the beneficiary. They may coordinate with social workers, care managers, and medical professionals to ensure the beneficiary receives the best possible care and support.

Why Choose a Professional Trustee?

Families often select professional trustees for their specialized knowledge in benefit programs, tax laws, and financial planning. Additionally, professional trustees alleviate the administrative burden on family members who may lack the necessary time or expertise. Importantly, professional trustees provide continuity, ensuring stability for the trust over time.

Choosing the right trustee is one of the most important decisions a family can make to secure the future of their loved one. Before deciding, ask your attorney or settlement consultant for a list of reputable professional trustees.