Probate & Trust Law Section Conference Manual ... - Minnesota CLE

else uses the computer from time to time. If, on the other hand, the beneficiary’s use of the
computer is infrequent, and others use it as well, questions can arise about whether that
purchase meets the sole benefit requirement. Perhaps the computer is never used by the
beneficiary, but her caregivers use it on a daily basis to monitor medications and provide
information to each other about the cares that were completed and the important observations
that were made; in that case the computer probably would be for the beneficiary’s sole benefit.
A common question that arises is whether travel costs can be paid for a family member to
travel with the disabled beneficiary. It is likely that the answer turns on whether the
beneficiary’s illness or condition requires a traveling companion and whether the family
member is qualified to act in that capacity. These questions have not been addressed in the law
with any detail, but in another area of Medical Assistance law, some definition has been given
for this sole benefit analysis. See, Minn. Stat. § 256B.059, subd. 1(g)(For purposes of
determining if a transfer is for the “sole benefit” of a Community Spouse under Medical
Assistance, “no other individual or entity can benefit in any way from the assets or income at
the time of a transfer or at any time in the future.”)
g. Choosing the Trustee
The choice of Trustee is perhaps the most important factor for the successful administration of
the Trust. It is a uniquely difficult position because it calls for the Trustee to assume all of the
traditional duties of a Trustee, but because the beneficiary of a Specialor Supplemental
NeedsTrust has specialneeds, is likely receiving, or could be receiving, government assistance
and may need the resources of the Trust to meet day‐to‐day items not covered through
assistance programs, the Trustee of a SpecialNeedsTrust has extra duties.
i. Benefit Analysis
Specialand Supplemental NeedsTrusts generally direct the Trustee to assist the beneficiary to
find any government assistance that might be available. Even without this directive, successful
administration of the Trust is dependent on an understanding of the eligibility rules for the
beneficiary’s programs. This requires the Trustee to become familiar with the beneficiary’s
illness or condition and to learn about that person’s individual needs. In addition, the Trustee
should gather information about government assistance programs, available benefits and
eligibility criteria, or associate with a professional who can make these assessments. This is
important not only for the well‐being of the beneficiary, but also because the supplemental
nature of the Trust requires the Trustee to refrain from distributing Trust resources for anything
that could be covered through a government assistance program.
ii.
Nature of Distributions
The broad nature of distributions allowed by Specialand Supplemental NeedsTrusts can place a
Trustee in the position of analyzing and making distributions once a day or once a year,
depending on the size of the Trust and the beneficiary’s life circumstances. The Trustee can be
14 Supplemental & Special Needs Trust Basics | Jeffrey W. Schmidt