Archive for June 2018

A Trustee’s Duty to Independently Monitor Delegates UPIA §9(a)(3)

The Uniform Prudent Investor Act at Section 9(a)(3) directs, “A trustee shall exercise reasonable care, skill and caution by periodically reviewing the agent’s actions in order to monitor the agent’s performance and compliance with the terms of the delegation.” Many trustees implicitly trust the investment advisor to whom they (or their predecessor) delegated investment duties. They…

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UPIA §7 – A Trustee’s Duty to Incur Only Reasonable Costs

“Wasting beneficiaries’ money is imprudent. In devising and implementing strategies for the investment and management of trust assets, trustees are obliged to minimize costs” (National Conference of Commissioners on Uniform State Laws).Duty to Pay Only Fair Fees: Section 7 of the Uniform Prudent Investor Act states, “In investing and managing trust assets, a trustee may only…

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How is a targeted return like UBER?

A trustee would not get into an Uber until they defined the destination for their ride. A trustee would not hire an employee without describing at some level the work the employee was being hired to do. So then, why do so few trustees communicate a targeted rate of return to the investment advisor to…

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