Investment Governance Blog

Risk-1

A Trustee’s duty to monitor the risk within the trust portfolio

Duty to Establish Risk Expectations:  Section 2(b) of the Uniform Prudent Investor Act directs that “A trustee's investment and management decisions respecting individual assets must be evaluated not in isolation but in...
Lemming

A trustee’s duty to establish return objectives or “Don’t be a lemming”

Duty to Establish a Target Return:  Section 2(b) of the Uniform Prudent Investor Act directs, “A trustee's investment and management decisions… must be evaluated… as a part of an overall...
If you dont know where you are going...

Trustee’s duty to develop an administrative plan or “If you don’t know where you are going you might end up somewhere else.”

Duty to Develop a Plan: Section 2(a) of the UPIA directs, “A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution...
Trustee Checklist

Duty to Prudently Administer or “Check, check, double check, recheck” (1 of 12)

Duty of Prudence: Section 2(a) of the Uniform Prudent Investor Act directs, "A trustee shall administer the trust as a prudent person would…"  But how is one to know how...
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,...