Appointing a Trustee for Your Special Needs Trust Fund
Setting up a trust fund for your child with special needs is the best thing you can do to ensure that his or her future is secure in the unlikely event of something happening to you or your spouse. There are many types of trust funds you can set up, but one of the important things that all trust funds have in common is the use of a trustee. A trustee is a person or entity that will administer the trust fund, invest its assets, and authorize spending.
Trustees can be any capable adult that the grantor, or the creator of the trust fund, wishes to place in charge. A trustee can also be an entity, such as a bank. Choosing the right trustee is just as important as the trust fund itself. The person or entity should be someone you consider wise and trustworthy.
A trustee can be a loved one, such as a trusted family member or friend. They can also be hired professionals, such as a lawyer, attorney, or trust officer. If unsure of whom to choose as your trustee, your best choice may be a combination of a loved one and a professional. This way, you can be sure the loved one is meeting all of the requirements of the fund and your child receives the legal help he needs.
If there will be more than one trustee, it is also highly advised that someone is assigned to dispute any fights or issues. You may think that two family members get along now, but if you were to pass away, they could both differ greatly in opinions.
No matter whom you choose as the trustee, be sure to compensate them for their time and effort. Even family members appointed as trustees will have toner sacrifice a lot of time and energy to act as a trustee. Usually, their payment can be established within the trust.
Are Family Members the Best Choice?
Are family members or loved ones the best choice when it comes to appointing a trustee? This answer varies by situation and individual. However, when any death occurs, emotions are always on the rise. This friction could cause rifts between the appointed trustee and other family members. Also, there are many regulations and laws to understand when it comes to administering a special needs trust fund. The family member must completely understand certain regulations, such as the ones regarding Social Security and Medicaid. If they do not, they must then be quick to hire a professional that can ensure everything in the trust runs smoothly.
Setting up a special needs trust fund is a lot of work. The hardest part is appointing a trustee in whom you can fully trust. While professionals may be expensive, they are also an invaluable aid to ensure that everything goes smoothly and according to plan to benefit your child with special needs.
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