When appointed as a trustee or executor of a trust, you take on many responsibilities. Your goal is to always act in the best interests of the trust holder. While your main duty is to protect the assets of the trust, you most likely won’t just be sitting on those assets. It is important to diversify the assets while preventing losses and encouraging modest gains. If you have been appointed as a trustee and your experience is minimal, you may want to entrust an investment advisor, bank, attorney, accountant, or an enrolled agent for advice on how to properly manage and protect the trust.

Investment analytics show that it is important to diversify assets and investments. When it comes to protecting a trust, you do not want to “put all your eggs in one basket.” You can decide which form of investment and asset allocation best suits the needs and desires of the trust holder, but it is important to broaden your horizons. You may decide to invest in stocks and bonds and invest among different industries as well. Whether you decide to invest in consumer goods, energy stocks, transportation, or health care, it is important that you spread the risk factor among a variety of industries to lessen the possible risks.

It is equally important to be informed and concerned about changing market conditions. The market is constantly changing so investment and market condition knowledge is crucial. Since you will be investing someone else’s money, you must always act in the best interests of the trust holder. This is your main goal is all of your duties as a trustee and should always be carried out to avoid problems.

Gaudy Law is a law firm striving to reshape your opinion of what it means to work with a law firm. Our legal philosophy is one of loyalty, honesty, and integrity. Contact us today and speak with one of our skilled representatives who will treat you fairly with your best interests in mind.

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