Investment Governance Blog
Don’t let 2023 bring about a trustee breach lawsuit
The performance of liquid assets in many trusts was dismal in 2022 and likely fell short of expectations projected by the trusts' investment advisors. If so, some trustees are going...
The trustee’s duty to diversify or “Too much of a good thing?”
Statutory Consideration: Section 2(c)(5) of the Uniform Prudent Investor Act directs, “A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances,...
A Trustee’s Duty to Monitor Investment Agents
Duty to Monitor Investment Agents: Section 9(a)(2,3) of the UPIA directs that a trustee shall establish “… the scope and terms of the delegation, consistent with the purposes and terms...
How Much Should A Trustee Be Paid?
Few trust documents provide any guidance about trustee compensation other than to say it shall be “a reasonable amount”. Predictably, few trustees, beneficiaries or professional advisors agree on what a...
Duty to incur reasonable investment costs
Duty to Pay Only Fair Fees: Section 7 of the UPIA directs, "In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation...
How much is too much for a trustee to be paid? (Part 3 of 3)
This article is the last in a three-part series addressing the factors to consider when establishing trustee compensation. In this article we consider the reporting requirement AFTER the trustee has determined...
How much is too much for a trustee to be paid? (Part 2 of 3)
Duty: Section 7 of the Uniform Prudent Investor Act directs that “… a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the...
