Preservation | Family Wealth Protection & Planning

A trustee is responsible for administering a trust for the benefit of the beneficiary or beneficiaries. Unless the beneficiary is also a trustee, he or she will not have direct access to information regarding the investments, debts, liabilities, expenses, receipts and other financial arrangements of the trust. Without a mechanism for learning this information, the beneficiary might worry that assets will run out, the trustee might misuse funds, or another problem will occur. Therefore, Missouri law, and the law of those states that have adopted similar provisions from the Uniform Trust Code (UTC), provides that a trustee must provide specific information and an annual report to certain beneficiaries so their interests may be protected.

It is common for clients to have established a long-lasting relationship with one or more investment advisors over their lifetime. This relationship is so strong that in their eventual demise, they would like for the advisor to continue to provide services for the client’s assets that may be held in trust for successive generations. However, at the same time, the client may recognize that the most appropriate person to make decisions with respect to distributions, and matters other than investment decisions, is a corporate trustee. Commonly, the investment advisor cannot serve as trustee even if naming an individual is desirable.

Maybe you just recently signed your estate planning documents. Maybe your documents have been sitting in a drawer or firebox, sight unseen, for five or more years. Either way, a common question is: When do I need to update my estate plan?

If you are like most people, you have a clear idea about who should receive your assets upon your death. However, selecting who will be responsible for ensuring your estate plan is faithfully carried out may be more challenging. When your estate plan includes a trust that directs the distribution of your assets, the person (or entity) you choose for this important job is called a trustee. Your trustee will have the obligation to act in the best interests of your beneficiaries and to manage and protect the trust assets on their behalf.