1. Small Trusts/Big Challenges
Robert W. Fechtman, CELA
Evan J. Krame
Special Needs Alliance
2015 Fall Meeting
October 17, 2015

2. What is a “small trust?”:
Arguably, every trust, particularly SNTs
Limited investment options
Trust likely to be completely disbursed prior to beneficiary’s expected death
Trustee’s administrative duties are disproportionately large (from the trustee’s point of view
Costs of administration are disproportionately large (from the beneficiary’s point of view

3. Making the most out of small (or large) personal injury settlements:
Consider a structured settlement annuity
Based on beneficiary’s “rated age”
Slows down ability to spend without saying “no”
Utilize (or obtain) a Life Care Plan
Refer client to, or use, a pooled SNT
Fewer administrative costs
Experienced with saying “no”

4. Minimizing administrative expenses:
Tax return preparation
Investment advisory fees
Trustee fees
Attorney fees

5. Controlling spending and managing expectations:
Do a budget analysis
Get the accountant or investment advisor involved
Create a Disbursement Request form
Develop a thorough trust disbursement policies letter
Use the True Link card

6. Big ticket purchases: House Renting vs. purchasing
Financing the purchase
Cost of modification
Who can live in the home, and will they pay rent?
Taxes
Cost of maintenance

7. Big ticket purchase, cont.:
Vehicle
Accessibility
Are there other options
New or used?
Ownership
Insurance
Vehicle Use Agreements

8. Dissolving the Trust: Should the Trust be terminated?
Medicaid payback?
Will the beneficiary lose future needs- based benefits?
What if the Trust owns a house or a car?
If so, don’t wait until the last dollar!
Transfer to a pooled trust?
Small Trust statutes and Trust language