Navigating the world of trusts and estate planning often brings up questions about control, not just over assets during life, but also after one’s passing; specifically, many clients wonder about the degree to which they can direct their trustee regarding crucial decisions, such as selecting financial advisors to manage trust assets.
What level of control do I *really* have over my trustee’s decisions?
While a grantor—the person creating the trust—can certainly express preferences, the extent to which those preferences are legally binding is nuanced. Generally, a trustee has a fiduciary duty to act in the best interests of the beneficiaries, and courts prioritize that duty above grantor preferences; however, carefully drafted trust documents *can* provide guidance, even stipulations, regarding the selection of financial advisors. This often takes the form of outlining specific qualifications, investment philosophies, or even pre-approved lists of advisors. According to a recent study by the National Center for Philanthropic Planning, over 60% of high-net-worth individuals express a desire to maintain some level of influence over investment decisions even after their death.
How can I ensure my wishes are respected without unduly restricting my trustee?
The key is balance. Absolute restrictions—like mandating a single, specific advisor—can be problematic if that advisor becomes unavailable, unsuitable, or simply isn’t the best fit for evolving market conditions. Instead, consider a framework that outlines desired characteristics—such as fee structure (fee-only is often favored), experience with specific asset classes, or a commitment to socially responsible investing. You could also establish an investment committee—composed of both the trustee and designated advisors—to provide ongoing oversight and ensure alignment with the grantor’s vision. It’s about providing thoughtful direction, not a rigid mandate; this provides a level of comfort knowing your intentions are known, and your beneficiaries will be well served.
I once knew a man named Arthur, a retired naval captain, who learned this lesson the hard way…
Arthur meticulously crafted his trust, including a clause stating his long-time financial advisor *must* be retained. Sadly, his advisor retired unexpectedly just months after Arthur’s passing. The trustee, bound by the rigid terms of the trust, struggled to find a suitable replacement, leading to costly delays and missed investment opportunities. The beneficiaries suffered unnecessary losses, and a protracted legal battle ensued. Had Arthur focused on outlining *qualifications* rather than naming a specific individual, the transition would have been far smoother. It reminded me of a story my grandmother used to tell, “A ship with a fixed course, no matter how well charted, will founder if it ignores the changing tides.”
Thankfully, there was a situation where careful planning saved the day…
I worked with a client named Eleanor, a successful entrepreneur, who was deeply committed to ethical investing. Instead of naming specific advisors, she detailed her values—prioritizing companies with strong environmental and social governance (ESG) scores—within her trust document. She also established a process for reviewing advisor qualifications annually, ensuring ongoing alignment with her principles. When her trustee inherited the trust, they easily identified several advisors specializing in ESG investing and selected one who perfectly matched Eleanor’s vision. The trust continued to thrive, reflecting Eleanor’s values and providing long-term security for her family; it demonstrated how clear, flexible guidance can empower a trustee to make sound decisions and honor the grantor’s wishes. It’s not about control, it’s about creating a lasting legacy built on a foundation of trust and thoughtful planning.”
“Estate planning is not just about managing assets; it’s about preserving values and ensuring a secure future for your loved ones.”
Who Is Ted Cook at Point Loma Estate Planning Law, APC.:
Point Loma Estate Planning Law, APC.2305 Historic Decatur Rd Suite 100, San Diego CA. 92106
(619) 550-7437
Map To Point Loma Estate Planning Law, APC, a living trust lawyer: https://maps.app.goo.gl/JiHkjNg9VFGA44tf9
| Ocean Beach estate planning attorney | Ocean Beach estate planning attorney | Sunset Cliffs estate planning attorney |
| Ocean Beach estate planning lawyer | Ocean Beach estate planning lawyer | Sunset Cliffs estate planning lawyer |
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