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TRUST SOLUTION
The modern solution for establishing a meaningful, uncomplicated, and unconflicted trust relationship is to separate the custody, investment management, legal, and trust parties. These providers should be unaffiliated and have extensive experience in their professions, which will avoid conflicts of interest between any of the parties. Any one of the relationships can be terminated without disturbing the others.Russell Capital Management is not affiliated with any of the parties to a trust.
There is no quid-pro-quo in these relationships thereby protecting the trust from conflict of interest issues among the parties. The professionals are not affiliated whether they are the investment manager (Russell Capital Management), the corporate trustee, the legal, or the custodian.
The costs of a trust with unconflicted relationships can be comparable to, or less than, a bank trust. In this modern approach not only is the trustee a fiduciary, Russell Capital Management is a fiduciary establishing another level of responsibility.
Marketable securities are held in custody in a brokerage account of your choosing, which is covered by SIPC insurance and private insurance.
The beneficiaries may elect to receive a comprehensive easy-to-read statement from the trustee, a brokerage statement from the custodian broker, and detailed investment performance reports from the investment manager.
Beneficiaries have three points of contact instead of one: 1) the investment manager for the trust, 2) the trustee, 3) and their trust attorney. |
PARTIES TO A TRUST
Settlor (Maker, Grantor, Trustor) The person who establishes the trust for his/her beneficiaries.
Trustee A family member, friend or corporate trustee who, acting as a fiduciary (one who always acts in the best interest of the client), makes the decisions for the trust based on the expressed written directions of the trust document. This document directs the trustee on matters of the trust, and is drafted at the behest of the settlor by an estate-planning attorney. The trustee is the person or financial institution that holds the legal title to the trust estate. The trustee is charged with accounting for the income, distribution, and assets of the trust. The trustee provides the tax preparer with appropriate information and monitors the investment manager.
Estate Planning Attorney An attorney who is skilled in the drafting of wills and trusts, and is employed by the settlor to draft the trust document, which may be included in a will or as a separate document.
Investment Manager A fiduciary such as Russell Capital Management, an SEC registered investment advisor empowered by the trustee to manage the investment assets of the trust.
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OPTIONAL PARTIES TO A TRUST
Trust Protector: A person(s) who is empowered by the trust document to act in the best interests of the beneficiaries. The protector is frequently chosen to act alone or with the beneficiary, trustee, trust attorney, or investment manager and who can change the trustee, investment manager, or other functionaries of the trust. The trust protector may be empowered to do just about anything that the settlor chooses including approval of distributions to beneficiaries, settling disputes between the parties, and acting as a go-between. The trust protector is not a trustee, but functions as would the settlor. Therefore, this person should be familiar with the settlor’s wishes and intentions and is usually a friend or trusted advisor. Not all jurisdictions recognize trust protectors although the position is becoming increasingly popular among states. Delaware, the jurisdiction of The Advisory Trust Company, recognizes the trust protector.
Trust Advisors: Individuals with specific expertise that are employed by the trust to carry out certain functions such as overseeing the management of a company, commercial real estate, or other enterprise.
Tax Accountant: An accountant may be employed by the trustee to prepare the tax returns of the trust or audit the trust |