​If you have a loved one who is physically, mentally or developmentally disabled he or she may be entitled to receive government benefits, such as Supplemental Security Income (SSI) or Medicaid. Most of these benefits are needs and income-based and are thus, available only to those with very limited resources.
 
If you leave a disabled dependent a substantial inheritance, you may accidentally disqualify that individual from receiving benefits which might be essential to his or her care. However, we find that clients are often uncomfortable with the idea of completely disinheriting a loved one. A third-party special needs trust may help address this problem.
 
This type of trust is created for the specific purpose of supplementing the government benefits to which the beneficiary is entitled - -- providing only for items above and beyond the benefits the disabled beneficiary receives from governmental agencies or programs. It allows a client to leave assets to their loved one without disqualifying that loved one from the benefits that they have come to rely on.
 
One of the requirements of a third-party special needs trust is that the beneficiary not have any control or ownership of the trust assets. In order to accomplish this, the trustee must be given complete authority regarding the distribution of the trust assets and income. The beneficiary cannot have the power to demand payment of either income or principal from the trust. This makes the choice of trustee extremely important. 
 
This brief article is no substitute for careful consideration of all of the advantages and disadvantages of a special needs trust, especially as applied to your unique situation. Before implementing any significant estate planning strategy or selecting a Trustee for a Special Needs Trust, you should consult with your estate planning advisor. 
 
For more information on planning for those with special needs, please contact Davis & McCann, P.A. We are members of Wealth Counsel, a national consortium of Estate Planning Attorneys and the National Academy of Elder Law Attorneys (NAELA). We focus our practice on providing clients with the best legal advice on Estate Planning, Medicaid and Long-term Care Planning, Family Business/Small Business Succession Planning, Probate, Trust Administration, Real Estate Transactions, and related matters.​

One of the goals of a good estate plan is to ease the burden of estate administration for those we leave behind. Failing to communicate with your heirs, executor or trustee about the structure of your estate plan and your assets can cause considerable difficulty and result in added administrative expenses. The “nuts & bolts” of your estate administration will often depend on your recordkeeping during your lifetime. Your records should include:

       
        
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• Full legal name
• Social Security number
• Legal residence
• Date and place of birth
• Names and addresses of spouse and children (location of death certificates if deceased)
• Location of will or trust
• Location of birth certificate and marriage, divorce & citizenship certificates
• Employment records
• Education and military records
• Religious affiliation (name of church)
• Memberships in organizations and awards received
• Names and addresses of doctors, lawyers and financial advisers
• Requests, preferences, or prearrangements for burial

 
Keep these records in one secure place and make sure that a trusted family member or friend knows the exact location of the files. You should also provide financial information to make certain that your assets are easily discoverable. Check to be sure all the following information is in one convenient place:

• Sources of income and assets (pension funds, interest income, etc.)
• Social Security and Medicare information
• Insurance information (life, health and property with policy numbers)
• Bank accounts
• Location of safe deposit boxes
• Copy of most recent income tax return
• List of liabilities (to whom and when due)
• Mortgages and debt (including how and when payments are paid)
• Credit card and charge account names and numbers
• Property tax records
• Location of personal items (jewelry & family treasures)

 
Having all this information organized will greatly assist those who will be administering your estate and help keep costs down.

For more information on how to ease the burden of your passing on your loved ones, please contact Davis & McCann, P.A. We are members of Wealth Counsel, a national consortium of Estate Planning Attorneys and the National Academy of Elder Law Attorneys (NAELA). We focus our practice on providing clients with the best legal advice on Estate Planning, Medicaid and Long-term Care Planning, Family Business/Small Business Succession Planning, Probate, Trust Administration, Real Estate Transactions, and related matters.​

People of all shapes and sizes are establishing trusts. Credit shelter trust, marital trusts, generation skipping trusts, life insurance trusts, Medicaid asset protection trusts, charitable remainder trusts and revocable living trusts are just a few examples of the types of trusts that are in use today. All of these trusts have at least one thing in common—you need a trustee to manage them. Your trustee plays a critical role in whether your trust will be successful.  The question is, who should be your trustee?
 
A trust is a written agreement between the grantor (sometime call a settler or trustor) and the trustee. Under a trust agreement, the grantor transfers cash and/or assets to the trustee and gives the trustee instructions regarding the distribution of the income and principal of the trust to the beneficiaries. The trustee is a fiduciary who must follow the instructions of the grantor with respect to the investment of trust assets and all distributions.
 
There are three types of trustees; professional, semi-professional, and amateur. Professional trustees are usually corporations who are engaged in the business of acting as a trustee for hire. Bank trust departments and independent trust companies are the most common examples of professional trustees. Semi-professional trustees are typically professional advisers like attorneys and accountants. These individuals have some, but perhaps not all, of the technical knowledge of a full-time professional trustee. However, they often have a long-standing relationship with the grantor and his/her family.
 
Amateur trustees include any individual who acts as a trustee on a part-time, infrequent basis.  Appointing yourself, your spouse, your child, your brother-in-law-the-doctor or most other family and non-family members typically means that you have appointed an amateur trustee. No one type of trustee is right for every situation. Like any other aspect of estate planning, choosing a trustee involves weighing relative advantages and disadvantages and it should be done with the help of a trusted advisor.
 
Professional trustees do offer expertise in trust law, taxation, investments and a variety of other topics that relate to trusts. They also have staff that can provide grantors and beneficiaries with various reporting services. There is very little risk of fraud when dealing with a corporate trustee and a corporate trustee won’t die or become incapacitated. However, professional trustees may be more expensive than semi-professional or amateur trustees. 
 
Semi-professional and amateur trustees share many of the same advantages and disadvantages, although perhaps to a different degree. On the plus side, they may be more “in tune” with the grantor’s wishes and the personal needs of beneficiaries, as they often have a longer standing personal relationship with the grantor. They may waive some, or all, of the fee to which they are entitled. There are, of course, negatives as well. Semi-professionals and amateurs are part-time trustees. They may lack the time and skills necessary to manage the trust assets. They are also subject to the human frailties of injury, sickness, death and dishonesty. There is not one right answer for all situations and thus, it pays to review your options carefully. 
  
For more information on who you should consider as your trustee, please contact Davis & McCann, P. A. We are members of Wealth Counsel, a national consortium of Estate Planning Attorneys and the National Academy of Elder Law Attorneys (NAELA). We focus our practice on providing clients with the best legal advice on Estate Planning, Medicaid and Long-term Care Planning, Family Business/Small Business Succession Planning, Probate, Trust Administration, Real Estate Transactions, and related matters.​