Establishing a special needs trust is a big step; families deserve a solution with nothing to untangle. Families deserve independent, objective referrals to trust providers that include information about the referer’s own role and financial stake in the outcome, if any.
Millions of families want to protect and care for disabled family members – now, and when they are no longer able to provide care personally. Special needs trusts are the financial tool for creating this long-term security.
Finding the Right Fit
The options for creating special needs trusts are varied; each comes with different features and benefits that families should evaluate to find the right fit for themselves and their disabled loved one.
Corporate providers (firms, rather than individual people) include big banks (usually with high account minimums), small banks, independent trust companies, and specialist trust providers (Visible is a specialist provider of special needs trusts). Individuals can serve as personal trustees but are typically not part of organizations that include key trust components like investment management, trust administration, accounting, and payments. These services must be sourced individually which can drive up costs. (See the list of trust components below.)
Transparency Means You Know
Many special needs families work with special needs or elder law attorneys and naturally turn to them as a trusted resource. Other families turn to trusted wealth and financial advisors.
Wealth advisors work in a highly regulated industry and are required by law to disclose costs, fees, and their own role in the products and services they bring to clients. Rules for attorneys also anticipate this scenario; when an attorney serves as trustee for a trust they drafted, they are responsible for ensuring that clients understand any potential conflicts and are fully informed.
In all situations, families are always fully entitled to know when a referral or recommendation comes with a financial stake attached, and to learn about other suitable approaches and providers.
Make Choices You Feel Good About
Trust services can sound pretty complicated, especially when you are not familiar with them. Rather than being put off by long words and even longer sentences, take it one step at a time. A trust is also a bundle of financial services put together in a certain way, so take each component in turn and think about what it means to you and your family. Here is a list of trust components to get you started.
Key Trust Components
| Corporate Structure | Is this an institution built to operate over the long term, or a single individual who may retire, become incapacitated, or pass away? |
| Client Service and Engagement | Is client service tailored to each family and beneficiary and the practical realities of special needs trusts, or is there one standard service model? |
| Beneficiary Care Linkage | Does the trust provider proactively evaluate evolving beneficiary needs and objectively connect the family / beneficiary to suitable services? |
| Trust Operations & Administration | Do the provider’s services include trust accounting, reporting, and tax return preparation? |
| Distributions | How does the trustee review and process distribution requests; how do they manage payments to maximize convenience for families? |
| Benefits Eligibility | What is the process for evaluating distributions while preserving benefits and/or benefit eligibility? |
| Investment Management | How does the provider select, retain, and evaluate investments, monitor and manage investment costs, and budget distributions across the life of the trust? |
| Governance | Does the provider’s structure embed professional oversight and governance practices? How? |
| Fee Transparency | What does it cost to set up a trust? What are the annual fees? For a pooled trust, does the provider keep any remaining trust assets at trust closing? What is the “total cost of ownership” of a trust? |
As consumers, we all deserve to be treated fairly and be fully informed about our choices. Ask all of your questions, get as much information as you need, and make a choice that is right for you.