Deciding on an appropriate trustee for a special needs trust is arguably the most critical decision for special needs trust planning. Due to the enhanced compliance obligations and legal risks, many family members and professional fiduciaries (such as trust companies or banks) are reluctant to serve as trustee of a special needs trust.

At MGD Law, over half of our attorneys have experience working inside professional trust companies and bank trust departments as legal counsel and trust officers. We marshal their experience to create internal procedures for special needs trust administration that seek to implement the best practices they learned while working for such corporate trustees. That experience, combined with our flexible platform as a boutique private law firm focusing on estate and trust work, uniquely situates our attorneys to help fill the role of special needs trust trustee when family and trust companies have declined. As lawyers we are aware of the compliance and legal risks, but we have the experience to guide our special needs trust clients and meet their needs as trustee.

Although MGD Law as a firm is not a trust company and the firm cannot be named as a corporate trustee, our individual attorneys can and are willing to be named as trustees. It is MGD’s policy whenever possible to name two attorneys as co-trustees to provide continuity, responsiveness, and breadth of service without impacting trustee fees.

When our attorneys serve as trustee of a special needs trust, we:

• Adhere to the trust agreement and applicable state and federal law, with close attention to remaining in compliance with the law and trust agreement while also effectuating the intent of the party creating the trust and preserving any federal and state benefits, if so directed
• Manage distribution requests from beneficiaries in a methodical, transparent process, which responds to the current needs of the beneficiary while also considering the long-term implications of distributions on the income stream available and the rights of remainder beneficiaries, and in a manner that will not disqualify federal or state benefits
• Properly fund, administer, and distribute trusts
• Provide personalized service, outside of traditional business hours when necessary, as trustee and as legal counsel
• Handle tax filings and advice in-house, including the preparation of fiduciary income tax returns
• Partner with professional investment advisors experienced in advising fiduciaries on investment of fiduciary assets.

If you have a special needs trust in need of a professional trustee, your MGD Law attorney may be able to help.