“A wise man should have money in his head, but not in his heart.”
- Jonathan Swift
Trust Investment Policy Statement & Fiduciary Responsibility: Why it is so important
As the trustee of a private trust, foundation or other entity you are agreeing to take on the fiduciary responsibility of your trust in regards to its investment policy, tax, legal and regulatory requirements. When running a family trust or a foundation, very few trustees understand or have the ability to accommodate the fiduciary responsibility needed in order to properly manage the trust to legal requirements. Not understanding or having the knowledge to properly administer the trust can leave the trustee open to a variety of legal concerns. Many of these can be avoided with the proper planning and investment strategy.
An Investment Policy Statement outlines the proper policies, strategies and procedures that are required of the investment management needs of the trust. Although most trusts typically require this document to be reviewed annually, it is also helpful to have it available during times of market turmoil so that grantors can remember why they established the portfolio they have. This assists trustees in maintaining their fiduciary responsibility to do the following.
- Define the guidelines & objectives of the portfolio
- Create a framework on which to evaluate investment performance
- Provide guidance for all responsible parties regarding portfolio implementation & management
- Select the appropriate amount of risk for a portfolio
- Account for spending & liquidity needs
- Select a proper time horizon for the portfolio
Trust Fiduciary Services
Elysien Private Wealth can advise on selecting a trustee, assisting your current trustee or provide administrative services for essentially any type of personal or business trust . Whether your trust is a testamentary trust, charitable trust, or an irrevocable life insurance trust, we can help you establish the proper fiduciary framework that will make sure your trust is in proper compliance with all applicable state and federal trust laws. Each trust is unique and needs to be managed to a fiduciary standard.
Elysien Private Wealth offers the following services for trust fiduciary management.
- Document review and compliance with all trust provisions and applicable laws
- Investment Policy Statement establishment & review
- Proper fiduciary investment management services
- Calculation and disbursement of distributions for grantor and beneficiary income
- Management and maintenance of discretionary disbursements
- Preparation of annual accounting paperwork
- Preparation, review and filing of fiduciary tax returns
- Annual asset valuation as needed or required
- Coordination with your other trust professionals
- Preparation and explanation of quarterly trust reports
- Complete recordkeeping services
- Bookkeeping and tax reporting of trust activity
- Communication and coordination with grantors, beneficiaries, and other advisors