Chapter 12
Investing the Trust’s Assets and Paying Its Expenses
IN THIS CHAPTER
Discovering how to differentiate between income and principal
Choosing investment advisors
Understanding diversification and investing in a socially responsible way
Using trust assets to adequately provide for beneficiaries’ needs
Knowing which expenses you can and can’t pay from the trust
Unlike an estate, a trust is an ongoing endeavor and its lifetime may well be longer than yours. Your duty as trustee is to manage the trust’s assets to ensure that the trust’s beneficiaries will have adequate funds when they need (or are entitled to) money. Your goal is to see that the asset base grows, not to keep it the same or see it shrink.
In order to make your tenure as trustee a successful one, this chapter explains what you need to know about separating principal from income. It also shows some basic investment options, some of which you may decide to use to invest the trust assets and others of which you may ...
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