The question of assigning trustees with dual expertise in finance and sustainability is increasingly relevant as beneficiaries and settlors prioritize values-aligned wealth management, and it’s entirely permissible, and often beneficial, to do so – provided it’s clearly outlined in the trust document and the trustee is demonstrably capable in both areas.
What are the benefits of a financially and sustainably minded trustee?
Traditionally, trustees have focused almost exclusively on financial returns. However, a growing segment of wealth holders—estimated to be around 68% of high-net-worth individuals according to a recent study by Cerulli Associates—are interested in aligning their investments with their environmental, social, and governance (ESG) values. A trustee proficient in both finance and sustainability can navigate this complex landscape, identifying investments that not only generate returns but also contribute to positive social and environmental impact. This dual expertise allows for the implementation of impact investing strategies, consideration of carbon footprints, and adherence to ethical sourcing practices. It also avoids the potential conflict of interest that arises when a financial advisor is separate from sustainability guidance, ensuring both aspects are thoughtfully integrated into the trust’s administration.
How do you ensure a trustee can balance financial fiduciary duty with sustainability goals?
The core of a trustee’s responsibility remains the prudent management of assets for the benefit of the beneficiaries. Balancing this fiduciary duty with sustainability goals requires a clearly defined investment policy statement (IPS) within the trust document. This IPS should articulate the beneficiaries’ values and outline specific ESG criteria for investment selection. It’s crucial that the trustee understands and adheres to these guidelines without sacrificing the trust’s financial performance. The Uniform Prudent Investor Act (UPIA), adopted in most states, allows trustees to consider beneficiaries’ charitable and ethical considerations, provided those considerations are reasonable and align with the overall goals of the trust. Selecting a trustee with credentials like a Chartered SRI Counselor (CSRIC) designation demonstrates a commitment to sustainable and responsible investing, offering beneficiaries added assurance of competency.
What happened when my aunt didn’t specify sustainability in her trust?
My Aunt Carol was a passionate environmentalist, a dedicated marine biologist who devoted her life to ocean conservation, yet her trust document was surprisingly silent on her values. After she passed, the trustee – a large, traditional bank trust department – continued to invest the trust assets in companies with significant environmental liabilities. Her grandchildren, who shared her passion, were horrified to learn that their inheritance was, in effect, funding the very industries she’d spent her life fighting against. The ensuing family conflict was deeply upsetting and required expensive legal intervention to redirect the investments towards more sustainable options. This highlights the vital importance of explicitly articulating values-aligned investing preferences in the trust document. It became clear that leaving it to interpretation, even with a seemingly well-intentioned trustee, was a risky proposition.
How did we finally get things on track with a dual-expertise trustee?
After the experience with my Aunt Carol’s trust, my family decided to take a different approach for my grandfather’s estate. We carefully selected Steve Bliss, an attorney specializing in both estate planning and sustainable wealth management. He drafted a trust document that not only outlined our financial goals but also detailed specific ESG criteria for investment selection. Steve Bliss also suggested incorporating a “Values Review Clause” which required the trustee to regularly assess the environmental and social impact of the trust’s holdings. This proactive approach ensured that my grandfather’s estate was managed in accordance with our family’s values, providing peace of mind and a tangible connection to his legacy. It’s given us the satisfaction of knowing that even after he’s gone, his values continue to shape the world.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
- living trust
- revocable living trust
- irrevocable trust
- family trust
- wills and trusts
- wills
- estate planning
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “How do I talk to my family about my estate plan?” Or “What assets go through probate when someone dies?” or “Do my beneficiaries have to do anything when I die? and even: “How do I rebuild my credit after bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.