Choosing a Fiduciary
It’s well known that a directed trust offers a number of benefits over the traditional model of one fiduciary making all decisions involving the trust. With a directed trust, the fiduciary duties are bifurcated, thus allowing the settlor to delegate each fiduciary role to the best person or entity to handle that role. However, utilizing a directed trust presents some challenges due to the inherent problems of coordinating multiple fiduciaries. For this reason, settlors and their advisors should dedicate a great deal of time and effort selecting an experienced directed trustee who possesses the skills needed to keep all of the “moving parts” working in harmony. Unfortunately, settlors and their advisors sometimes fail to dedicate the same amount of time in selecting the trust’s other fiduciaries. This oversight can derail an otherwise well thought-out estate plan, potentially costing the settlor or trust both time and money.
To continue reading our Trust Counsel’s, Peter J. Bietz, full article on the topic of Choosing a Fiduciary please click the following graphic below.