Volume 9, Issue 3 Fall 2013
Administering a Special Needs Trust Attorney Janna Dutton spoke to a full room of interested family members on July 18 about trusts and how to administer them for the benefit of a person with a disability. She explained that a Special Needs trust is only needed by a person with a disability if there are government benefits that need to be protected. Otherwise, a family may choose to use other types of trusts or estate planning, options which she explained further. Primarily, however, her presentation focused on the administration of Special Needs Trusts. There are two major types of Special Needs Trusts, the “SelfSettled” Special Needs Trust and the “Third-Party” Special Needs Trust. There is also a “Sole Benefit” Trust that might be appropriate under certain unusual circumstances. She detailed the importance of Trustee impartiality as well as their required duties of delegation, investment and no self-dealing. She stressed the importance of understanding these duties while selecting a Trustee. Dutton reviewed accounting and reporting requirements of the Trustee, as well as the appropriate expenditures that can be made from the trust in consideration of the rules of SSI. In answer to a question about how to protect funds in a trust from being mismanaged by the trustee, she recommended the use of a Trust Protector who would provide oversight of the trust. The Trust Protector could be a family member, a professional or a business entity. The Trust Protector could also be given the right to appoint a trustee if there is a vacancy in the position. Much of the information shared in this presentation is available in a very informative booklet that can be downloaded online at this link: http://www.duttonelderlaw.com/articles-of-interest/ articles-of-interest-special-needs-planning/ If you do not have access to a computer, a copy of the booklet can be requested at 773.508.1694.