Planning for the future of a family member with special needs is a deeply personal and often overwhelming responsibility. For many families, the complexities of trust administration, long-term care planning, and securing financial resources create significant stress. This emotional weight often leads to delayed conversations as parents and loved ones struggle to face the uncertain path ahead. Addressing these challenges proactively is not just a matter of financial security; it is an act of love and protection, ensuring stability and good quality of life for those who need it most.
A sibling struggles to maintain quality of care.
Two devoted parents spent their lives caring for their non-verbal son. Even at 30 years old, he requires constant support due to significant special needs. The parents provided for him at every turn—arranging therapies, coordinating care, and ensuring he thrived in the safety of their home.
At the parents’ passing, the couple’s daughter took over administering a Special Needs Trust funded by her parents for the benefit of her brother. However, the weight and responsibility of managing her brother’s long-term care and the administration of the trust became too overwhelming. She consulted her attorney, who worked with her to initiate a transition plan for the trust to be administered by a corporate co-trustee. During this transition, she was able to assist and ensure the corporate co-trustee had a clear understanding of her brother’s needs.
As part of this transition, the sister established key documents for her brother’s future. This included outlining a full-time care plan and designating a successor legal guardian to protect his financial and medical needs in case she could no longer fulfill the role.
“Because we separate asset management from administration, we can easily step in and become a co-fiduciary partner for individuals who find themselves overwhelmed by all the tasks and details of trust administration.”
Michelle Diamond, Chief Development Officer, Cumberland Trust
Key Challenges
Guardianship and Power of Attorney Succession
Without these important documents in place, a critical gap in care would exist for the brother should the sister pass away or be rendered unable to perform the duties.
Create a Care Plan
Lacking a documented, long-term care plan can create a void in necessary care and decision-making. It could also impact the beneficiary’s opportunity for future treatment.
Navigate Complex Benefits
Without a clear understanding of the needs-based benefit requirements, the sister could unknowingly jeopardize her brother’s benefit eligibility and qualification.
Solution
A true partner in trustee responsibilities.
With a group of specialists focused solely on the administration of Special Needs Trusts, Cumberland Trust offers unique expertise and insight into this complex area.
In the case of the sister and her brother, Cumberland Trust partnered with the sister as co-trustee to provide committed support to the beneficiary’s complex and evolving care needs. The dedicated trust administrator helped the sister navigate the creation of necessary legal contingencies, a long-term care plan, and reporting documents. This partnership allowed the sister to gradually delegate the day-to-day administrative tasks so she could lean into her family relationship.
Working closely with the sister and the family’s financial advisor, Cumberland Trust became thoroughly familiar with the family’s history and dynamics. This knowledge helped ensure every future decision respected the grantors’ wishes and addressed the beneficiary’s unique needs. By putting together the financial structure for healthcare advocates, contractors, and other specialized service providers, Cumberland Trust supported a long-term, holistic care network for the beneficiary’s success.
Co-Trustee Responsibilities
Cumberland Trust worked closely with the beneficiary’s sister, the other co-trustee, to take on day-to-day administrative responsibilities and complex legal and tax requirements.
Legal Coordination
As co-trustee, Cumberland Trust enlisted legal professionals to develop crucial documents, such as guardianship directives and care plans to protect the beneficiary’s long-term needs.
Preservation of Benefits
Cumberland Trust maintained the beneficiary’s benefit qualifications and eligibility while administering the trust, allowing maximum flexibility for care options.
Twenty million U.S. families are caring for individuals with disabilities.
Cumberland Trust has a strong corporate commitment to this area of trust administration. We are a national leader in exceptional Special Needs Trust administration with a team of responsive trust officers focused and dedicated to Special Needs Trust administration.
Special Needs Trust Administration Services
- We become long-term partners for families and beneficiaries in the administration of their trust.
- We can connect you with third-party service providers to help you navigate public benefits.
- We can handle day-to-day financial needs, like scheduling bill payments from trust-held funds.
- We help plan future goals and needs alongside the beneficiary’s team of advisors.
- We serve as a first point of contact for the trust.
“One in five families will need support in caring for an adult or child with special needs. As an independent corporate trustee, Cumberland Trust is here to be a resource to help families execute the plan that has been put in place for beneficiaries with special needs and to provide families with peace of mind for the future.”
Michelle Diamond, Chief Development Officer, Cumberland Trust
Experienced administration for both types of special need trusts.
First-Party Special Needs Trusts
First-party Special Needs Trusts are funded with assets belonging to the beneficiary with special needs to protect that individual’s eligibility for state need-based funding, often as a result of litigation.
Third-Party Special Needs Trusts
Third-party Special Needs Trusts are set up by a donor, typically through an estate plan. The trust is established for a person with special needs to supplement, not supplant, any benefits the individual may receive from government programs. Often, these trusts go into effect when the donor passes away.
Help your clients support family members with special needs.
We’re here to help plan for the future.
Contact us today to explore Special Needs Trust administration services.