Investment Governance Blog

It’s harder to be a trustee than to go down steps on a pogo stick

It’s harder to be a trustee than to go down steps on a pogo stick

The Problem: You are a trustee. You said "Yes" when a family member, close friend, or client asked you if you would serve as their successor trustee. Now, the settlor...
How did you do this year

Investment Advisor Annual Review (Duty to Monitor)

A trustee has a duty to act prudently when they delegate investment responsibilities to third parties. One of these duties is "…establishing the scope and terms of the delegation, consistent...
Because I said So 2

A Trustee’s Duties when the Portfolio has a Lower Return than Projected

A trustee has a duty to establish return objectives consistent with the trust purposes, terms, distribution requirements and other considerations. But as all trustees know the outcome is rarely consistent...
Fish without a hook

Anatomy of a Trustee Lawsuit

Twice in the last 30 days we have gotten calls from attorneys who are representing trustees being sued by disgruntled beneficiaries. The fact patterns for these two projects were almost...
The Trustee’s Compliance Library

The Trustee’s Compliance Library

Trustees and beneficiaries don't always see eye-to-eye on issues of trust administration and governance.  For the most part, the reasons for these disagreements are divergent beliefs about responsibility, duty, fairness,...
Case Study – Modifying Trust Distribution Rates

Case Study – Modifying Trust Distribution Rates

Last month the Anodos team worked on an interesting investment governance project that we thought you might find elucidating. Facts:  A grantor setup a "Net Income" trust in 1987 for the...
Verify

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

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...
How is a targeted return like UBER?

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...