Posts Tagged ‘trust assets’
Don’t let 2023 bring about a trustee breach lawsuit
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 to get sued.
Read MoreA trustee’s duty to investigate conflicts of interest
Duty to Investigate: Section 2(d) of the UPIA directs, “A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.” In response to this duty, a prudent trustee will investigate whether any conflicts of interest exist between the trust, the investment advisor, and the investment products or process the advisor has adopted.
Read MoreA 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 the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk [expectations] reasonably suited to the…
Read MoreInvestment Advisor Annual Review (Duty to Monitor)
A trustee has a duty to act prudently when they delegate investment responsibilities to third parties.
Read MoreAnatomy 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.
Read MoreCase 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 benefit of their grandchild. The historic distribution rate from this trust, after all administrative expenses, has been 3.2%. (We know this by reviewing the last…
Read MoreA 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 and compliance with the terms of the delegation.” Many trustees implicitly trust the investment advisor to whom they (or their predecessor) delegated investment duties. They…
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