Notes

Outline

Care Managers, Advocates and Advisory Committees A care manager, advocate or advisory committee is not a technical requirement of a Special Needs Trust but can be useful in the effective management of the trust to comply with the Grantors intent.

Factors to Consider The trustee may need assistance in making distributions in a manner that comply with the benefit programs the beneficiary is receiving Care managers and advisory committees may provide checks and balances with the trustee to lessen the chances that the Trustee may either mismanage the trust or not make distributions in the beneficiaries best interest.

Practice Tip Special Needs Trusts require trained advisement to meet the objectives of the document The wise practitioner will align themselves with professional trustees including corporate trustees experienced in the administration of the trust The following is from a presentation given to consumers about the need for professional trustees.

THE  IDEAL TRUSTEE Must understand public benefits Will use discretion in the best interest of the disabled beneficiary Can wisely invest and conform to all statutory fiduciary requirements Carries insurance, is bondable or has deep pockets  Understands taxes Keeps perfect books Can identify second rate services or abuse Is immortal

Choose a management system and team to carry out your intent Many Special Needs Trusts fail because of ill equipped Trustees We have found that a system of checks and balances works best in trust administration.

Choose a management system and team to carry out your intent Divide the duties into three categories Financial Personal including advocacy, care management, benefits Accountability

Model 1 – the Trustee directed by a Trust Advisory Committee. The Trustee can be directed by a Trust Advisory Committee which can direct distributions or replace the Trustee

Model 2 – the Trustee directed by a Care Manager. The Trustee can be directed by a Care Manager. The Trustee manages the funds The Care Manager interacts with the beneficiary The Trust Protector oversees the Trustee and Care Manager from a distance and can replace either for any reason

Model 3 – Co-Trustees For smaller trusts, or trusts where the beneficiary can advocate for themselves Co Trustees with the power to seek assistance from benefit, and financial advisors may adequate.

Which Model Should you Choose? The choice of which model is right for your situation will depend upon The beneficiary’s disability and unique needs The amount of funds in the trust The need for advocacy and care managers The proximity of the Trustees or advisory committee members

SELECTION OF MANAGEMENT TEAM MEMEBERS Family or friends, Professional fiduciary, Trust Company, C.P.A., Private Socialworker                                   or Case Manager, Or a combination                                         of the above.

Trust Protector A Trust Protector oversees how the trust is managed, without day to day involvement The Trust Protector reviews accountings and assessments from the care manager The Trust Protector may hire and fire the trustee or care manager without cause A Trust Protector can be a professional, family or friends.