Managing Disbursement Challenges in Special Needs Trusts and Settlement Preservation Trusts: Fiduciary Duties, Compliance Risks, and Real-World Strategies for Complex Distributions

Ben Tiefenback | Commonwealth Community Trust

Ben Tiefenback, Esq., is Counsel and Director of Client Services at Commonwealth Community Trust, a non-profit pooled trust administrator that has served over 3,000 beneficiaries across the United States who are vulnerable or have a disability.

Prior to joining CCT, Mr. Tiefenback was a trust and estate attorney serving Hampton Roads, the Middle Peninsula, and the Northern Neck. His practice focused on estate planning and trust creation and administration, with an emphasis on special needs trust planning due to his personal experiences with special needs issues in his family.

Mr. Tiefenback currently serves on the board of directors of the Alliance of Pooled Trusts (APT), the first coalition in the United States dedicated to uniting Pooled Trust providers in establishing best practices for the industry. He also writes for CCT and other publications, including NAELA News, and speaks at CLE seminars and other events across the country.

Joanne Marcus | Commonwealth Community Trust

Joanne Marcus, MSW, serves as the President and CEO of Commonwealth Community Trust (CCT) a non-profit pooled trust administrator that has served over 3,000 beneficiaries across the United States who are vulnerable or have a disability. Ms. Marcus has worked in nonprofit administration since 1978 and has led CCT since 2000.

As an expert in the field of Pooled Special Needs Trust administration, Ms. Marcus has published numerous articles for professional organizations including The National Alliance on Mental Illness and The National Medicare Secondary Payer Network. Ms. Marcus is frequently asked to present to professional organizations and family groups nationwide including The National Academy of Elder Law Attorneys, The American Academy of Estate Planners, The United Spinal Association, and Stetson University College of Law.

I. Government benefits | 1:00pm – 1:20pm

• Implications for distribution decisions

II. Trust administration: Fiduciary responsibilities & distribution policies | 1:20pm – 1:40pm

• Distribution standards: Absolute discretion vs. ascertainable standard
• Roles and responsibilities of the trustee or trust administrator
• Fiduciary duties
• Communication and transparency
• Guidelines for disbursements: Decision-making process and factors to consider

III. ABLE accounts | 1:40pm – 1:50pm

IV. Trust termination | 1:50pm – 2:00pm

• First-party: Medicaid payback
• Third-party
• Pooled trust retention of remainders

Break | 2:00pm – 2:10pm

V. Tax issues for trust disbursements | 2:10pm – 2:30pm

• Grantor and non-grantor trust considerations
• Interplay with traditional retirement accounts

VI. Fact patterns, real-life examples of difficult distribution decisions or trust termination | 2:30pm – 2:50pm

VII. Estate planning for challenging distributions | 2:50pm – 3:10pm

• Planning for challenging circumstances
• Planning for challenging people
• Naming and empowering the right people
• Drafting tips