Choosing a Special Needs Trustee
Jason Stolz CLTC, CRPC
Choosing a Special Needs Trustee
One of the most important decisions a family makes in special needs planning is who will serve as trustee. The trustee manages assets, distributes funds, and ensures that government benefits like SSI and Medicaid are not disrupted. At Diversified Insurance Brokers, we guide families nationwide on choosing the right trustee and coordinating coverage with tools like special needs life insurance and properly structured trusts.
What Does a Trustee Do?
The trustee is responsible for overseeing how trust funds are invested and spent. They must follow federal and state rules to avoid disqualifying the beneficiary from vital programs. A good trustee balances compassion with fiduciary responsibility, ensuring long-term stability. Learn more about why this matters on our why a special needs trust page.
Types of Trustees
- Family Member Trustee: Offers familiarity and emotional connection, but may lack technical expertise.
- Professional or Corporate Trustee: Brings financial experience and compliance knowledge, though usually with added fees.
- Co-Trustees: A blend of personal care and professional oversight, often the most balanced choice.
Many families also review high-risk life insurance or annuity strategies to ensure trust funding is guaranteed even in challenging health circumstances.
Case Study: Balancing Family and Professional Oversight
Profile: A Georgia family with a 22-year-old autistic son. The parents considered naming an older sibling as sole trustee but worried about complexity if Medicaid rules changed.
Outcome: The family appointed the sibling as co-trustee alongside a professional fiduciary. The trust was funded with a permanent life insurance policy (see life insurance for special needs child) to guarantee future resources. This balanced compassion with compliance and gave the family long-term peace of mind.
Get Guidance on Trustee Selection
Choosing a trustee isn’t easy. Our advisors will walk you through the pros, cons, and financial tools that make the most sense for your family’s future.
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How to Decide
Start by weighing your family’s dynamics, financial complexity, and the beneficiary’s future care needs. Some families choose a life insurance solution to fund the trust, paired with a professional trustee for accountability. Others prefer co-trustees to balance both perspectives.
FAQs: Choosing a Special Needs Trustee
Can a sibling be a trustee of a special needs trust?
Yes, siblings can serve as trustees, but they should understand compliance rules. Many families use co-trustees to add professional oversight.
What if a trustee mismanages funds?
Courts can remove a trustee who fails their duties. Professional trustees often carry fiduciary insurance to safeguard against this risk.
Can I change trustees later?
Yes, most trusts allow for a successor trustee. It’s smart to name backups in case the primary trustee can’t serve long term.
Do trustees get paid?
Professional trustees usually charge annual fees, often a small percentage of assets. Family trustees may waive compensation, but it is legally allowed.
Related Pages
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
