Investment and Distributions

FIDUCIARY RESPONSIBILITY FOR INVESTING AND DISTRIBUTING YOUR TRUST ESTATE ARE THE TWO PRIMARY FUNCTIONS THAT ARE KEY TO YOUR  ESTATE PLAN.

There is a legal title for the type of responsibility a trustee has with respect to the estate in the trust – fiduciary responsibility. It is beyond the level of care that the trustee would take with its own assets or affairs. It is a duty to parties who do not have control over the assets, since only the trustee controls them, but who are to receive the benefits from them now or later in the future.

The two major functions in that fiduciary responsibility involve what the trustee does:   investing them and distributing them.  It is possible for a trust to have these two fiduciary responsibilities divided, with one fiduciary handling the investment of the trust estate, and another fiduciary handling the distributions from the estate.

Those who offer professional investment advice or services have various forms of private or government regulation. These regulations may or may not monitor the manner of investing under a fiduciary standard.  Those who offer professional trust distribution services must normally be licensed with trust powers from a government entity. Trust powers include both investment powers and distribution powers. The normal entities licensed to do so are banks, trust companies and other financial institutions under federal or state licensing.

Providence First Trust Company is a licensed trust company with full trust powers under the charter powers of the State. Being held and monitored under the fiduciary standard for investments and distributions is key to having confidence in the administration of your trust.  And with Providence First as your trustee,  you will have that confidence.

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