If you are the trustee of a Florida trust, what is your investment strategy and is there a way to protect yourself from being sued by trust beneficiaries?
Consider reading this recent Wealth Management article on passive investing: http://wealthmanagement.com/asset-management/active-management-dying
- Under Florida law, a trustee needs to, is required to, have an investment strategy
- This is part of what is known in Florida trust circles as the Prudent Investor Rule
- Let’s say that you have a rich sister from Delray Beach who passes away. A Palm Beach probate is opened up but the estate is “small” because….
- Your sister left millions in her Florida revocable living trust, and
- You were named as the successor trustee
- So, you now need to invest the trust assets for the beneficiaries and you’ve read the trust document
- Do you pick and choose stocks and individual securities to purchase, and hold?
- How about active passive investing?
- Do you know what passive investing is?
- A Florida trustee purchasing index funds could be the secret weapon to achieving your trust goals: active passive can help you accomplish your duties as as trustee while getting your beneficiaries what you are supposed to provide them: diversified trust investments at a reasonable or low price that are easy to handle and which can comply with your fiduciary duties under Florida’s prudent investor act