TELESEMINAR: Trust Investments: A Guide to Trustee Duties & Liability Under the UPIA – A National Perspective
May 29, 2014
12:00 – 1:00 p.m.
1.00 MCLE hours
The most important decisions trustees make are related to where to invest trust assets and when to liquidate those assets. These decisions have become significantly more difficult in the last several years as the stock and the real estate markets have experienced sustained volatility. There are few, if any, “safe” investment choices that offer trusts and their beneficiaries reliable returns. Volatility has also given rise to increased litigation by beneficiaries challenging the investment decisions of trustees. This program will provide you with an understanding of the investment duties and standards of care of trustees, explain the relationship of Modern Portfolio theory to the requirements of the UPIA, and discuss best practices to avoid liability in a volatile market.
- Trustee investment duties, standards of care and liability
- Modern Portfolio Theory – defining risk/reward, “total returns,” passive v. active investing & asset allocation
- Balancing diversification and concentrated positions, including family businesses & when diversification is the wrong choice
- Practical application of duties of loyalty and impartiality, and the duty to minimize costs
- Determining when it is appropriate to delegate investment decisions to professionals – plus, related liability issues
- Best practices for administering trust investment decisions
Steven B. Malech, Wiggin and Dana, LLP, New York
Daniel L. Daniels, Wiggin and Dana, LLP, Connecticut