A Trustee is trusted for holding a fiduciary responsibility in managing the affairs of the trust. So appointing trustees become a critical role in the formation of a trust. Parents who wish to create a trust for special needs child care generally look towards family members for the role of a trustee post their lifetime.
Forming a private trust for your special needs child is the long-lasting solution. But the most difficult aspects parents have to address is finding a reliable trustee. Mostly the next trustee after parents is one among the family members. But that’s not enough. A trustee has to be someone who is adapt to managing accounts, taxes, and other financial matters. The trustees should know how to allocate money to these needs in an efficient manner.
In India, private trust covers the structure of creating a secure future for a special needs dependent. Through the private trust, the parents can choose to manage the child affairs as they wish to. It also ensures that the legacy left for the special needs child is managed to provide for the child lifetime care needs. Though a trustee manages the affairs they never own the trust assets which bring a fiduciary nature when a trust is functioning.
The concept of trust is a 3 tier structure- There is a settlor who creates the trust, there is a trustee who manages the trust and there is the beneficiary who benefit from the trust. When a trust is created the rules are laid down by the settlor. The rule says that the trustee will manage the affairs in a fiduciary capacity without any interest in the trust.
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