How are Special Needs Trustees Compensated?
A trustee is someone who holds and administers the property and/or assets for another person. The trustee must ensure they adhere to the proper rules and regulations that come with administering a trust, lest they face liability for missteps. Serving as a trustee to a trust is a time-consuming, complex feat — and this especially goes for a special needs trust. To help make up for the struggle that comes with acting as a trustee, they are compensated.
Financial institutions or trust companies are most often utilized to administer compensation. These organizations know how to manage trusts, track money, and follow documents properly. They take the stress of it all directly out of the hands of the individual trustee, though they will charge a fee for this work.
Private trustees operate similarly to one of the above associations, but with a personal touch. An elder law attorney or accountant are great options, as they properly understand all the burdens that come with organizing a trust. These professionals are usually paid at an hourly rate, but that rate changes based on the location and amount of assets to manage.
Thankfully, you don’t usually have to worry about scrounging up funds to pay the trustee, as trustees are typically paid through the trust itself.
