Fiduciary
Trustee to oversee investment, administration, and distribution of a special needs trust -- owning responsibilities like paying bills, filing taxes, maintaining records, and ensuring the trust is growing through diverse investments.
What is a Professional Fiduciary?
A professional fiduciary can be a person or organization that acts on behalf of the trust. They have a legal and ethical duty to prioritize their client’s best interests above their own and will typically manage all aspects of the trust, while also bringing in experienced parties to oversee more specialized areas.
A professional fiduciary adds value to any well-drafted special needs financial plan. Professional fiduciaries are also willing to act as successor trustee, whereas many financial institutions would not in the case of a special needs beneficiary.
Fiduciary Services may include:
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Trustee
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Guardian
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Estate Executor
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Daily Bill Paying and Money Management
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Healthcare Representation
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Agent under a Power of Attorney
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Executor for senior with no spouse or family
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Conservator for those who are mentally or physically incapacitated
Finding a qualified professional fiduciary
Consulting your Special Needs Trust attorney is a great place to start.
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Your attorney will likely have recommendations on professional fiduciaries they've worked with in similar scenarios and can help find a solid fit for you.
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There are search tools in finding a fiduciary near you (see below).
Fiduciary Search Tools
1 / Special Needs Answers
2 / Professional Fiduciary Association of California
3 / Directory of Pooled Trusts
Do your due diligence
Before meeting with any professional, be sure to investigate all required licenses and/or certifications to ensure they are the right fight. To be licensed in California, the person must pass an exam, complete 30 hours of approved education courses, and earn 15 hours of continuing education credit year for renewal.
Sample questions to ask
1. How much experience do you have working with special needs trusts?
2. What kinds of specific services do you provide for special needs trusts?
3. Do you provide tax planning and do you prepare tax returns in-house?
4. What do you charge and what other requirements must the trust meet in order to retain your services?
Evaluate Performance
It’s important to continuously evaluate the fiduciary’s performance in relation to the trust. Establishing regular reviews can be helpful to ensure all advisors are on the same page and working towards the good of the trust.
