7 Risk Mitigation Strategies for Trustees
Having served as an expert consultant / witness in trust litigation matters since 2013, I have observed seven “risk mitigation” strategies that a prudent trustee will adopt.
Strategy #1 – Compliance Library:
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CPC §16040: The trustee shall administer the trust with reasonable care, skill, and caution under the circumstances that a prudent person acting in a like capacity would use for a trust of like character with like aims to accomplish the purposes of the trust as determined from the trust instrument.
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Governance 101:
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Policy = Statutory duty (This is your job description)
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Procedure = Workflow to prove the policy was followed
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Practice = Memo/writing that demonstrates the procedure was followed
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Compliance Library: Vault into which all memos/work product are filed
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Compliance Calendar: Defining frequency of governance activity
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