How should #Florida trustees invest #trust beneficiaries’ money?
#Florida trustees are required to invest prudently, according to the #Florida prudent investor rule.
But, you say……….
- interest rates are low,
- REITS are not returning what they once did
- Emerging market equitieshave not returned what they did in the last decade
- US equities are HOT— maybe too hot ?
- bonds and money market funds provide little income.
- If inflation rears its ugly head, my bonds will decrease in value
If you are a #Florida trustee and are uncomfortable investing in the equity markets right now, here are a few things to consider:
- a year ago, January 2013, we were feeling the same way
- the US stock market was surging higher, and approaching all-time highs, creating nervous optimism — investor anxiety in good times
- consider looking for experienced, proven, #money managers whose portfolio is sitting on a high percentage of cash (to protect you if there’s a downtown in the US stock market, which, BTW, a lot of pundits are predicting)
Three of my favorite #mutual funds, for #Florida trustees to invest in are:
- #Weitz Partners Value Fund managed by veteran money manager, #Wally Weitz , and Bradley Hinton. Ticker: WPVLX. www.weitzinvestments.com #Partners Value Fund has, as of 12/31/13, 28.8% in cash !! Wow! Worried about a downturn in the stock market? You are buying a veteran value manager and cash !
- Weitz #Partners III Opportunity Fund, managed by #Wally Weitz. This fund is more aggressive than the #Partners Value Fund, can take bigger bets on individual investments, and can short stocks. You’re basically investing, and trusting, #Wally Weitz and his investment skill. Investor class: WPOIX ; Institutional class: WPOPX. 26.6% in cash as of 12/31/13.
- #Tweedy Browne Global Value. www.tweedy.com Great firm, great performance, 16% cash as of 12/31/13.
#FLORIDA TRUSTEES AND THE RULE — THE LAW — OF #PRUDENT INVESTING
The #Florida prudent investor rule, like most states’ investment laws for #trustees, #executors, and #Florida personal representatives requires you to have a plan.
The plan, #investment strategy, must include the growth of capital, the production of income, and, of course, safety.
* Perfect is not required !!
* But incompetence shall not be tolerated .
* You can’t invest a #Florida trust like you would your own money.
* You have to invest as a prudent person would invest.
The challenge which #Florida trustees have is understanding the #Florida prudent investor rule, and exactly what #prudent investing means.
#FLORIDA TRUSTEES CAN LIMIT THEIR LIABILITY
- read the #Florida prudent investor rule if you are a #Florida trustee or #Florida estate administrator or personal
- hire an experienced and competent #Florida trust lawyer who is familiar with #prudent investing and has personal, hands-on experience in investing #Florida trust money. I know what you are thinking: hire my firm. What’s important is that you get in good hands: competent, experienced, aggressive Florida trust lawyer. There are lots of goods one in South Florida: it need not be my firm and I am not a fit for every client.
- understand me #Florida trust code — it could be a #Florida trustee’s a best friend or enemy
- if you don’t understand investing, delegate your #Florida trust investment functions to a professional such is a #trust company. If you do it right, it’s the closest you get to bulletproofing yourself against a #breach of fiduciary duty lawsuit from a #trust beneficiary.
- take advantage of the Florida six-month #trust statute of limitations found in the #Florida trust code
WHO IS ADIVING YOU AS # FLORIDA TRUSTEE OR # FLORIDA PERSONAL REPRESENTATIVE OR ADMINISTRATOR OR ESTATE CURATOR?
FOR REFERRAL SOURCES, LAWYERS AND LITIGATORS
Our #Florida probate law firm
- does not draft estate plans
- does not draft wills and trusts
- does not steal your clients or your probates
Our #West Palm Beach, Florida #probate litigation firm :
- hands your clients back to you at the conclusion of the #Florida litigation
- after all, they are YOUR clients
- we try cases
- we handle appeals
- restricts its practice to #Florida probate disputes
- we work with you on #Florida estate administration, #Florida probate
- we litigate for and protect beneficiary rights
- we represent #Florida personal representatives or executors, and #Florida trustees
- we receive 95% of our clients from other lawyers
- we take contingency fee cases.
Our firm is comprised of
- serious Florida litigators,
- focused probate lawyers,
- experienced paralegals and support staff.
We have been involved in high profile, nine figure, multi-, multi-million-dollar #Florida estates, including Madoff matters, old # Palm Beach money and complex trusts and multi-party #Florida probates. We also handle “small” or “simple” matters. All we do is litigate and help you with #Florida estate and trust administration. #Tortious interference with an inheritance and allegations of #undue influence, and #will challenges and trust challenges are a unique subspecialty of the law. Does your client know which ones to file, when to do that, and why? Do you know the different ways to prove each case? How about quantifying or assessing damages? It would be our pleasure to work with you and to serve your clients. For a complete copy of this very recent legal opinion please email michelle@pankauskilawfirm.com.
John Pankauski, www.johnpankauski.com, is the author of The Trustee’s Book – An Individual’s Guide To Money, Misfits, Marriages, and Mismanagement, and the upcoming The $41 Trillion Inheritance War. He is an estate and trust litigator in West Palm Beach, Florida. www.pankauskilawfirm.com and has been featured on the CBS Evening News, The Wall Street Journal, MarketWatch, NBC, ABC and Fox.