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When a Trustee Fails: How to Remove or Sue a Special Needs Trust Trustee in NJ - Christine Matus · BSPE Legal Marketing Podcast

• 0:00
  Narrator: When a Trustee Fails: How to Remove or Sue a Special Needs Trust Trustee in NJ You created a Special Needs Trust because you wanted to protect your loved one's future, ensuring financial security without sacrificing their access to Medicaid or SSI.
• 0:16
  Narrator: But when the person entrusted to manage that future stops doing their job, the consequences can be life-altering for someone who depends on that trust for their basic well-being.
• 0:26
  Narrator: A trustee is not simply a caretaker of funds — they are a fiduciary, held to the highest degree of legal responsibility under New Jersey law.
• 0:35
  Narrator: This fiduciary duty demands more than ordinary care, requiring diligence, loyalty, and the kind of skill that reflects a relationship built entirely on trust.
• 0:46
  Narrator: At the core of every trustee's obligations are three binding duties: loyalty to the beneficiary, prudent management of assets, and impartiality toward all interested parties.
• 0:57
  Narrator: When the trust in question is a Special Needs Trust, these responsibilities become even more demanding because trustees must also navigate complex public benefits regulations.
• 1:08
  Narrator: One of the most critical rules governing Special Needs Trusts is the Supplement, Not Supplant Doctrine, which requires that trust funds improve a beneficiary's quality of life without replacing government benefits.
• 1:20
  Narrator: Trustees may use funds for education, therapy, adaptive equipment, or leisure activities, but they generally cannot pay for food, shelter, or medical care already covered by SSI or Medicaid.
• 1:32
  Narrator: A single error in distributions or investment decisions can cause a beneficiary to lose eligibility for means-tested programs, making every financial action a high-stakes decision.
• 1:44
  Narrator: Trustees must also maintain meticulous records of every transaction, produce regular accounting reports, and retain documentation that can withstand court or audit review.
• 1:54
  Narrator: In New Jersey, trustees face additional mandatory obligations set by the Division of Medical Assistance and Health Services, including annual accountings filed with the state each year.
• 2:05
  Narrator: Trustees must also provide 45 days' written notice to DMAHS before any individual expenditure exceeding $5,000 or any amount that would substantially reduce the trust's principal.
• 2:17
  Narrator: Unlike broader fiduciary standards, these reporting requirements are black and white — the trustee either follows them or does not, and courts treat violations as objective evidence of breach.
• 2:28
  Narrator: When a trustee misses accountings, misuses funds, ignores reasonable requests, or fails to protect a beneficiary's benefits eligibility, the law provides clear remedies for removal and legal action.
• 2:41
  Narrator: Speaking with a qualified New Jersey attorney can help you understand those remedies and take decisive action before your loved one's financial security is further compromised.
• 2:50
  Narrator: The legal team at Matus Law Group brings decades of experience in special needs planning, guiding New Jersey families through trust administration challenges with deep knowledge and genuine advocacy.
• 3:02
  Narrator: Every lawyer at the firm approaches each case with both legal precision and a heartfelt commitment to protecting individuals with disabilities and the families who care for them.
• 3:12
  Narrator: Call Matus Law Group, located at 81 E Water St #2C, Toms River, NJ 08753, United States, at 732, 281, 0060 to schedule a consultation and start protecting your loved one's future today.