Professional trustees normally handle special needs trusts but problems cause some to back off.
Professional trustees are increasingly unwilling to handle special needs trusts, according to Wealth Management in "Corporate Fiduciaries Are Shying Away From Special Needs Trusts."
The trusts are an essential estate planning tool for parents of children with special needs and, if set up and managed properly, the trusts allow the person with special needs to inherit assets from their parents without putting their eligibility for federal benefits in jeopardy.
The reasons some professionals refuse to accept the position are:
- Special needs trusts have been increasingly subject to more regulations and litigation. That makes it more difficult to manage the trusts and more likely that the trustees will be held liable for mismanagement.
- Special needs trusts are often seen as time-consuming to manage, which makes it more difficult for professionals to profit from them.
- Many professionals do not have the expertise to properly manage the trusts and they would prefer not to learn on the job. They decline the assignments.
- Many professionals just do not have the time or resources to take on special needs trusts. They are too busy with other trusts that are easier to handle.
An estate planning attorney can guide you through the process of finding the proper professional to handle your situation.
Reference: Wealth Management (Nov. 15, 2016) "CNN's Anderson Cooper Disinherited from $200 Million Vanderbilt Estate."