Special needs trusts: Why siblings shouldn’t always be in control

On Behalf of | Oct 30, 2024 | Trusts

When you have an adult child with special needs, it’s not unusual to worry about their future after you’re gone. That’s why a lot of parents in that situation create special needs trusts to provide for their comfort and care.

When you create a trust, of course, you need to name a trustee. A common choice is the disabled child’s sibling – but that may not be the right choice. Here’s why.

You need someone who understands public benefits

The whole point of creating a special needs trust is to make certain that whatever funds you leave behind don’t interfere with your disabled child’s public benefits, such as Medicaid and Supplemental Security Income (SSI). The interaction between the trust and these benefits can be complicated, and that’s a heavy burden to put on someone without any special training or financial expertise.

You may change the dynamic between the siblings

Right now, your disabled child may enjoy a warm and loving connection with their non-disabled sibling. That could change the moment that there’s any conflict over your disabled child’s wants or needs. By naming their sibling as the trustee, you’re putting that sibling in a position where they may have to occasionally deny certain requests, and that could damage their relationship.

You are placing a heavy burden on the nondisabled child

Finally, a trustee’s job isn’t easy. Aside from everything listed above, there’s a lot of paperwork involved. Taxes and accounting can take up a great deal of time, and your nondisabled child may not feel free to pursue their own goals and dreams because they need to be present for their sibling. They may grow to resent the position.

If you’re considering a special needs trust for your disabled child, it may be wisest to talk the situation over with someone who can provide experienced legal guidance and a dispassionate viewpoint about who should be in charge.