Individual Trustees Articles

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...
RiskApocalypse

UPIA §2(b) – Duty to Monitor Risk and Return

The Duty The preamble to the Uniform Prudent Investor Act notes, “The tradeoff in all investing between risk and return is identified as the fiduciary's central consideration.”  For most trustees...
Advice

Prudent Delegation Standard of Care: Registered Investment Advisor v. Registered Representative

In the same way a trustee owes duties of care and loyalty to the beneficiaries of a trust, the investment managers also owe a particular standard of care to the...
Pirate

UPIA §7 re Duty to Pay Only Fair Fees

“Wasting beneficiaries' money is imprudent. In devising and implementing strategies for the investment and management of trust assets, trustees are obligated to minimize costs” (National Conference of Commissioners on Uniform...
business manager's duties of care

Johnny Depp v. TMG: What are a business manager’s duties of care?

The Question: What standard of care and what attendant duties does a business manager owe to their client? The Answer: It depends on what roles and services the business manager...
Diversification

Reconciling the Duty to Diversify

The Duty “In making and implementing investment decisions, the trustee has a duty to diversify the investments of the trust unless, under the circumstances, it is prudent not to do...
prudent administration for a trustee

UPIA §2(c)(6) re Other Resources of the Beneficiary

The Conundrum: Question: Should the investment policy and distribution rate from a trust be informed by assets held by the beneficiary that are outside the trustee’s responsibility or control?   Predictably...