Payment of trustees usually takes one of two forms — either a flat fee based on a percentage of the trust\’s assets or an hourly rate — and the method of compensation usually depends on who is serving as trustee.
If you are administering a first-party special needs trust, pay attention to who is benefiting from items purchased by the trust or you could cause problems with the beneficiary\’s government benefits.
The Seventh Circuit Court of Appeals rules that the potential depletion of a Medicaid beneficiary\’s special needs trust on private nursing care while the beneficiary challenges Wisconsin\’s decision to reduce her Medicaid benefits does not constitute irreparable harm for purposes of obtaining a preliminary injunction. D.U. v. Rhoades (7th Cir., No. 2:13-cv-01457, June 3, 2016).
The Court of Appeals of North Carolina reverses a trial court\’s decision to remove the trustee of a special needs trust after the lower court found, among other things, that he violated the sole benefit rule by using trust funds to purchase a house for his wife, the trust beneficiary. In the Matter of the Estate of Cathleen Bass Skinner (N.C.App.Ct., No. COA15-284, June 21, 2016).
Our son receives Supplemental Security Income (SSI) due to a heart condition. He is about to receive an inheritance and we would like to protect it with a special needs trust. What is the best type of trust for him?
A little-known provision in the Social Security regulations allows the spouse of a retiree to also receive Social Security benefits, even if he has not yet reached retirement age, so long as he is caring for a child with disabilities at home.
Reversing a lower court, the U.S. Court of Appeals for the First Circuit rules that a state housing authority cannot count distributions from a special needs trust funded by a settlement as income because the payments would not be considered income had the settlement been taken as a lump sum. DeCambre v. Brookline Housing Authority (1st Cir., Nos. 15-1458, 15-1515, June 14, 2016).
The Supreme Court of Arkansas rules that a judge cannot refuse to establish a (d)(4)(A) trust because of public policy concerns if the petitioner otherwise meets the statutory requirements set out in state and federal law. In The Matter of James S. Corn (Ark., No. CV 15-902, June 2, 2016).
If you\’ve decided to hire a caregiver for a person with special needs, you\’ll need to interview the candidates. Here are eleven important questions to ask.
Unfortunately, too many trustees of special needs trusts or those who oversee funds for people with special needs don\’t even know that they have a duty to account for the funds they manage, let alone perform that duty correctly.
“We no longer require that masks be worn when meeting with us. However, if you wear a mask, we’ll do likewise.”
