What criteria are used to determine the investment policy for the trust?
The trust document is the main source of information regarding the appropriate investment mix for the trust. Whether the trust has present and/or future beneficiaries has great bearing on the way the trust must be managed. If the grantor is still living, the grantor’s input also is important. Additionally, as trustee, Advisory Trust will have recommendations, based on our experience as a corporate trustee and our understanding of the trust document. Relevant factors include the trusts time horizon, liquidity concerns, tax considerations, and legal constraints. The investment policy statement is a collective statement, agreed on by all parties, as to how the investment manager will select investments.
