Trustees do not have an easy job. They are required to invest the assets of a Trust, not according to their own needs and investment goals, but according to the needs and investment goals of the Trust beneficiaries. In most states, how a Trustee should go about doing this is governed by the Uniform Prudent Investor Act, which embraces modern portfolio theory. The key component of modern portfolio theory is that the investment objectives and risk tolerance of the individual investor need to be … [Read more...]
Deciding on a Professional Trustee
We have discussed before about the possibility that some people might want to consider hiring a professional Trustee to handle their Trusts instead of relying on a friend or family member. That has sparked questions about how to decide in individual cases. The best thing to do is to talk to your attorney about it, but here are some factors the attorney would use to help you make a decision. 1. How large is the Trust? If a Trust is small, then it is probably a waste of resources to hire a … [Read more...]
Burden of Proof in Trust Disputes
If you have been appointed as a Trustee of a Trust that has other people as beneficiaries, you need to exercise extreme care and caution about how you handle the Trust assets. This is especially the case if you make transactions for the Trust that could be seen as self-interested. In Texas, the law is not on the Trustee's side if a dispute over the transactions arises. In an ordinary civil lawsuit, the plaintiff has the burden to prove that the defendant committed the act complained of. … [Read more...]
