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 State Laws).Duty to Pay Only Fair Fees: Section 7 of the Uniform Prudent Investor Act states, “In investing and managing trust assets, a trustee may only…

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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 State Laws). Duty to Pay Only Fair Fees Section 7 of the Uniform Prudent Investor Act states, “In investing and managing trust assets, a trustee…

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ERISA §1104(a)(1)(A)(ii) re Duty to Incur Reasonable Fees

It is fundamental to a trustee’s duties to ensure that expenses incurred by the plan are fair and reasonable. However, when a plan is using one vendor to provide a bundled solution representing various services, determining whether the plan is paying “fair fees” is difficult. But just because it is hard does not mean it…

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