Special needs trusts can be difficult to manage and it can also be difficult to find professionals willing to take on the job.
Special needs trusts are an essential estate planning tool for parents of children with special needs. 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. However, these trusts need to be managed properly to receive the benefits so normally professional trustees are hired for the job.
Unfortunately, professionals are increasingly unwilling to do so as Wealth Management reports in "Corporate Fiduciaries Are Shying Away From Special Needs Trusts."
The reasons for this 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.
If you are considering a special needs trust, make sure you ask your attorney about professionals in your area who will handle the trustee duties and who have the expertise to do so.
For more information about estate planning and special needs planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Wealth Management (Nov. 15, 2016) "Corporate Fiduciaries Are Shying Away From Special Needs Trusts."