How to Choose a Special Needs Trustee in Jacksonville

Choosing the right trustee for a Special Needs Trust (SNT) is one of the most important — and complex — decisions a family can make when planning for a loved one with a disability. A trustee isn’t just someone who handles the money. They’re responsible for making sure the trust is managed properly, all while ensuring the beneficiary remains eligible for crucial public benefits like Medicaid and SSI.

Let’s explore what a Special Needs Trust is, the types of SNTs, and what to consider when choosing a special needs trustee — especially here in Jacksonville.

What Is a Special Needs Trust?

A Special Needs Trust is a legal tool designed to provide financial support for a person with a disability without interfering with their eligibility for government benefits like Supplemental Security Income (SSI), Medicaid, or housing assistance. The trust can pay for extras that improve the person’s quality of life — things like transportation, therapies, education, and recreational activities.

There are three main types of Special Needs Trusts:

First-Party Special Needs Trust

Funded with the beneficiary’s own money — for example, from a personal injury settlement or inheritance. These trusts must include a “payback” provision to reimburse Medicaid upon the beneficiary’s death.

Third-Party Special Needs Trust

Funded by someone else (like parents or grandparents) for the benefit of the disabled individual. These trusts do not have a Medicaid payback requirement.

Pooled Special Needs Trust

Managed by nonprofit organizations, these combine funds from multiple beneficiaries into one large trust, but maintain separate sub-accounts. A pooled trust is often a good option when the trust assets are modest, since administrative costs are shared.

Why Choosing the Right Trustee for a Special Needs Trust Matters

Serving as a trustee for a Special Needs Trust isn’t just a title — it’s a job. A serious one. The trustee must make financial decisions, manage assets, follow trust terms, and ensure that disbursements don’t jeopardize public benefits eligibility. In other words, the trustee needs to avoid what we call “foot faults” — small mistakes that can lead to big problems.

The Role of a Special Needs Trustee

Managing and investing trust assets responsibly
Keeping up-to-date records and filing taxes
Paying bills and authorizing distributions
Navigating SSI, Medicaid, and other benefit program rules
Advocating for the beneficiary’s best interests
Coordinating with care providers and professionals

The law doesn’t require a trustee to have any special license or training — just that they be over 18 and capable of managing their own affairs. But when it comes to managing a special needs trust in Jacksonville (or anywhere), the real question is: Do they have the time, knowledge, and skills to do the job right?

Who Should You Choose as Trustee for a Special Needs Trust?

A Family Member

Family trustees often have an emotional connection and want what’s best. But good intentions aren’t enough. Many family members don’t fully understand public benefits rules or how much work is involved. They may not keep good records, and even honest mistakes can put benefits at risk. Plus, they’re still legally responsible for everything — even if they delegate tasks.

That said, family members can still play an important role: as co-trustees, trust protectors, caregivers, or advocates.

A Professional Trustee

Hiring a professional — like a Jacksonville-based attorney, accountant, or trust company — can bring much-needed expertise. Professionals understand fiduciary duties, tax rules, and benefit programs. They also bring objectivity, which helps avoid family conflict.

While professional trustees charge fees, those fees reflect the complexity of the job. And remember, even family trustees are allowed (and often begin) to charge fees once they realize the workload.

A Co-Trustee or Trust Protector

Sometimes the best solution is a hybrid. Pair a family member who knows and loves the beneficiary with a professional who knows the rules. This ensures care and compliance.

Another option is appointing a Trust Protector — someone who doesn’t manage money but has the authority to replace the trustee if things go wrong. This gives the family oversight without burdening them with full fiduciary responsibility.

Five Questions to Help You Select the Right Individual

When creating a Special Needs Trust, trust makers or parents should carefully consider five key questions to help identify the right trustee.

Is the potential trustee knowledgeable about public benefit programs like Medicaid, SSI, or Section 8 housing? These programs have complex rules, and a misstep could jeopardize the beneficiary’s eligibility.
Does the trustee have the time to take on the ongoing responsibilities of managing the trust? This role can be time-consuming, especially if the beneficiary requires a high level of care.
Would it make sense to appoint a professional trustee—such as an attorney, accountant, or bank—who has experience with Special Needs Trusts and can help avoid family conflicts?
How comfortable are you handing over control of the trust to someone outside the family? If that’s a concern, consider naming a family member as co-trustee alongside a professional.
Is a pooled trust a viable option, especially if the trust’s assets are modest? Pooled trusts, typically managed by nonprofit organizations, can offer cost-effective administration while preserving essential benefits.

Asking these questions upfront helps ensure the trustee you choose is truly equipped to protect your loved one’s financial future. And having these conversations now — before a crisis hits — will help ensure your loved one is cared for in the way you intend.

Speak with a Jacksonville Special Needs Planning Attorney to Plan for the Best Outcomes for Your Loved One

Here in Jacksonville, families often have strong community ties and want to keep trust administration “in the family.” That’s understandable. But it’s vital to balance heart with smarts. Florida’s Medicaid rules can be particularly tricky, and a single mistake could cost a loved one their benefits.

That’s why working with a Jacksonville-based estate planning team like Legacy Planning Law Group who understands Florida laws — and who can recommend or even serve as a special needs trustee — is essential. We understand that each family has unique needs, and our team is here to guide you through these complex decisions with care and clarity. Schedule a Discovery Call with Team Legacy to learn how we can help you choose the right person to serve as trustee.

References: American College of Trust and Estate Counsel (Feb. 2, 2023) “Understanding Special Needs Trusts” and Special Needs Alliance (Feb. 2015) “Do I Really Need A Professional Trustee For My Special Needs Trust?”