Questions Every Trustee Should Ask Before Administering a Special Needs Trust

When you are asked to administer a special needs trust, it is important to carefully review the terms of the trust document. Every special needs trust is unique. As the trustee, you must fully understand each provision and how it applies to the administration process.

11 Important Questions to Consider When Administering a Special Needs Trust

Before beginning the trust administration process, assess the following questions:

  1. What state governs the administration of the trust?
  2. Are there any co-trustees serving alongside you?
  3. How do you accept your trustee appointment? How do you resign if you no longer wish to serve?
  4. Does the trust contain a payback clause that requires the trustee to repay state agencies for Medicaid benefits when the beneficiary passes away?
  5. Does the trust require that you obtain court approval of all accountings?
  6. Does the trust require that you obtain court approval before trustee fees can be paid?
  7. Does the trust require that you obtain court approval before attorney fees can be paid?
  8. When are distributions supposed to be made?
  9. Does the trust require any modifications in order to meet Medicaid requirements?
  10. Does the trust require that you post bond?
  11. Does the income earned by the trust flow through to the beneficiary?

While administering a special needs trust can be a complex process, trustees are entitled to seek guidance from a knowledgeable attorney. You do not have to navigate a trust administration alone. We encourage you to contact us today at (714) 459-5481 for more information.

 

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