• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Wilcox Attorneys, PA

Wilcox Attorneys, PA an Arkansas Estate Planning & Trust Information Center

Northwest Arkansas Estate Planning Attorneys (479) 443-0062

Client Vault
  • Home
  • Our Firm
    • Our Firm
    • About the American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • News & Events
    • Speaker Connection
  • services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • Legacy Planning
    • Pet Planning
    • Secure Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Webinars
  • Practice Areas
  • Resources
    • DocuBank
    • Elder Law Reports
    • Estate Planning Resources
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • Incapacity Planning
      • Legacy Wealth Planning
      • Medicaid Planning
      • Pet Planning
      • Probate
      • Trust Administration & Probate
    • Newsletters
    • Pre Consultation Form
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Contact Us
  • Blog

Special Needs Trust Requires Extra Attention from Trustee

October 30, 2013 by Deb Sexton Leave a Comment

special needs trustThe duties of a trustee can vary depending upon the type of trust they are administering.  With most trusts, the duties are more fiduciary in nature, meaning that the trustee must protect the assets in the trust and make sure that they are handled appropriately.  But some trusts, such as a special needs trust, may require that the trustee go above and beyond just financial concerns.

A special needs trust is one that is set up for the benefit of a person who needs assistance meeting his or her own needs.  The beneficiary of the trust can be someone with a condition like autism, a mental illness, a physical handicap, or many other mental or physical conditions.  The trust is set up to ensure that the beneficiary has the necessary funds for adequate care throughout his or her life, but especially when the person’s parent or spouse or other caregiver can no longer do what is necessary.

But someone who is designated as trustee of a special needs trust must do more than manage the money.  Especially when the beneficiary has no one else to tend to his or her needs, the trustee must make every effort to follow the progress or decline of the beneficiary and make sure that adjustments are made in the treatment plan as well as making sure that the funds are available to support it.

Unfortunately this doesn’t always happen as it should, especially when there is no family member to keep close watch on the beneficiary.  Many times, the trustee will be a bank or other financial advisor who is expected to watch over the finances.  But if that “professional” trustee is the only trustee, some courts may still require that trustee to pay attention to the beneficiary’s other needs as well.

In one case that started in 2007, a judge was appalled to learn that the professional trustees of a special needs trust had not visited the beneficiary in the decade that they had been in control of the trust.  The beneficiary was a teenage boy with autism, whose adoptive mother, his only relative, had died, leaving almost $3 million in a special needs trust for his care.  A care manager was appointed to tend to the boy’s personal needs as he was ultimately moved to a private room and had his medications adjusted, which resulted in positive changes in his own abilities to care for himself and interact with others.

In 2012, the judge was close to retirement and decided to check up on the young man’s progress.  She was again alarmed to learn that, while the trust was now worth $3.6 million, only $3,525 had been spent on the boy’s care.  At the same time, the trustees had collected fees of almost $80,000 during that period.

While this may be an extreme situation, the judge herself acknowledged that it isn’t unusual to find that professional trustees do not spend much time with the beneficiary of the trust.  But she believes that special needs trustees must do more than protect the assets of the trust; they must also monitor the beneficiary’s condition and progress and make sure that adequate assets of the special needs trust are made available to improve the beneficiary’s condition however possible.  Even when the trustee’s fees are reasonable, it still doesn’t excuse the obligation to inquire into the care of the person being served by the trust.  The best way to ensure that this situation does not happen is to have the trust designed by an estate planning attorney with experience with special needs trusts to make sure that all of the needs of the beneficiary are served.

  • Author
  • Recent Posts
Deb Sexton
Latest posts by Deb Sexton (see all)
  • Estate Planning is Essential Whether You Are Married or Not - April 25, 2018
  • Income Tax Basis in Estate Planning – Part 2 - April 23, 2018
  • The Downsizing Generation: How to Handle a Surplus of Stuff When a Loved One Ages - April 18, 2018

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Wilcox Attorneys, PA

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Subscribe to Our Blog

Subscribe to our blog for all the latest estate planning news and updates!

Office Address

Fayetteville
2766 Millennium Drive
Fayetteville, AR 72703
Phone: (479) 443-0062

Office Address

Prairie Grove
1100 Division Street, Suite 4
Prairie Grove, AR 72753
Phone: (479) 846-6026

( By Appointment Only )

Office Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 12:00 PM

Map

map for office
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

footer-logo

© 2023 American Academy of Estate Planning Attorneys, Inc.