Most states do not prohibit a parent or legal guardian from serving as special needs trustees of a special needs trust for their child. However, some states require that such a trustee be bonded, meaning that the trustee must have an insurance policy that refunds money to the trust if the trustee steals the funds. A prerequisite for a trustee to obtain a bond is to have excellent credit, and therefore many parents may not qualify for a bond. An experienced professional in managing special needs trusts might be a better trustee than a parent or a guardian depending on the amount of assets placed into the trust. For additional information on selecting a professional trustee, click here and here.
Contact our Special Needs Planning attorney today at (888) 597-9685 if you have any questions regarding special needs trustees or to discuss your family’s specific concerns.
