Many families tell us the hardest part of setting up a special needs trust is not the paperwork. It is answering one question: who will manage this money when we cannot? If no family member or friend is the right fit, an independent trustee can do the job. This page explains what independent trustees are and links to the national directory where you can find one.
What an independent trustee is
An independent trustee is an individual professional, not a bank or a trust company, who administers trusts as their occupation. They invest the money, follow the SSI and Medicaid rules, keep records, and pay for the things your loved one needs. Because they run small practices with low overhead, independent trustees usually cost less than a corporate trustee. Most charge an hourly rate or a yearly fee of around one percent of the trust, while banks and trust companies often charge more and require large minimum balances. A smaller client list also means the person who knows your family is the same person answering the phone.
The national directory
Independent Trustee Alliance: Find a Professional. The Independent Trustee Alliance (ITA) is the national membership organization for independent trustees. Its directory is searchable by state, and you can filter for “Trustee – Special Needs” to see members who handle special needs trusts. ITA certified trustees must have years of experience, continuing education, professional references, and agree to a code of ethics.
A second place to look is the National Guardianship Association’s Find a Guardian directory, which lists individual professional fiduciaries around the country. Many of them also serve as trustee of special needs trusts.
Questions to ask before you choose
- What do you charge, hourly or as a percentage, and is there a minimum trust size?
- How many special needs trusts do you administer, and how do you stay current on SSI and Medicaid rules?
- How quickly do you respond when a beneficiary needs something?
- What is your succession plan if something happens to you?
- Are you insured for errors and omissions?
- Can a family member serve alongside you as co-trustee or trust advisor?
We do not receive anything from these organizations and are not connected to them, and a listing in a directory is not an endorsement. Interview anyone you are considering. We share these resources because informed families make better decisions. If you would like to talk through your trustee decision, the consultation is free. Education is always free. You can also email tom@specialneedstrustsonline.com or call 508-690-0012.