Special needs trusts, also called supplemental needs trusts, provide support for beneficiaries in Mississippi who have disabilities and other functional limitations, while also preserving their eligibility for government programs. As with any trust, one of the most important considerations in creating a special needs trust is who will serve as its trustee – the individual responsible for managing the trust and acting on behalf of the beneficiary.
Retaining seasoned legal counsel to guide you through the process of establishing your special needs trust is vital to ensuring your loved one is supported without compromising their eligibility for government assistance. Let Palmer & Slay, PLLC guide you each step of the way.
How Special Needs Trusts Work
Individuals with special needs may qualify for government aid through Medicaid, Supplemental Security Income (SSI), and Mississippi programs, but only if they meet certain income and asset restrictions. In other words, having too much money or property may disqualify someone with a disability or other limitation from government assistance. This is where the special needs trust comes in.
Instead of simply giving money to the individual with special needs, one can establish a trust that will hold assets for that person’s benefit. The trust’s income and assets are not counted against the beneficiary when determining if they meet the requirements of government assistance programs. The person who establishes the trust is the grantor, the person with the special needs is the beneficiary, and the individual who manages the trust is the trustee.
Questions to Ask as You Choose Your Trustee
But how does the grantor select the right person to serve as trustee? To answer this, you and your family will want to ask a few basic questions and work with an experienced Mississippi estate planning lawyer as you narrow down the candidates:
- How do you avoid potential conflicts of interest? Trustees are fiduciaries, which means that by law they are required to put the needs and interests of the beneficiaries before their own and avoid conflicts of interest. In choosing your trustee, you want someone who can treat the beneficiary fairly and who will always put the beneficiary’s interests ahead of their own.
- Should you choose a professional or a family member? In many situations, it makes sense to have a family member who is involved with the beneficiary’s care serve as the trustee of the special needs trust. However, a professional will understand important matters related to the trust (like investments) and will have the time to dedicate to being a trustee.
- Does the trustee understand government benefits? It’s imperative that whoever you choose as trustee understands the various government programs, how they work, who is eligible for them, and how they can help the special needs beneficiary. Although professional trustees are expected to understand these issues, a family member may know just as much or more after having worked with the beneficiary for an extended period of time.
- Will the trustee make wise decisions? Trustees are relied upon to make critical decisions on behalf of the beneficiary and in furtherance of the trust itself. Many of these concern such issues as prudent investments and distribution of trust assets. There will be situations when the trustee will need to consult another professional, such as an attorney or a financial advisor, so make sure you can depend upon this person to make wise choices in all matters.
Here to Advise You and Your Family
At Palmer & Slay, we know that the well-being of your loved one is paramount as you establish your special needs trust and decide who will act as trustee. Our legal team is ready to advise you from start to finish and answer any questions or concerns you have. Schedule a consultation with our Brandon, MS office today to get started.