To Fund or Not to Fund: Non-Qualified Deferred Compensation Plans – Funding O...Fulcrum Partners LLC
Part 2 of 2 in an in-depth look at the Fundamentals of
Nonqualified Deferred Compensation.
MARKET TREND: As individuals continue to struggle with
saving enough for retirement, employer-sponsored retirement
plans remain at the forefront of planning discussions.
SYNOPSIS: Non-qualified deferred compensation (“NQDC”)
plans are a promise by the sponsoring employer to pay part of
an executive’s compensation to the executive at a later date
(e.g., upon retirement or other termination of employment). In
Part 1 of this series (see WRM No. 17-41), we discussed the tax
and ERISA [Employee Retirement Income Security Act of 1974 —
inserted for clarity] rules fundamentals of the two main types of
NQDC plans: (1) defined contribution and (2) defined benefit.
Part 2 reviews a sponsoring employer’s funding options and
financial accounting considerations when implementing a NQDC
plan.
To Fund or Not to Fund: Non-Qualified Deferred Compensation Plans – Funding O...Fulcrum Partners LLC
Part 2 of 2 in an in-depth look at the Fundamentals of
Nonqualified Deferred Compensation.
MARKET TREND: As individuals continue to struggle with
saving enough for retirement, employer-sponsored retirement
plans remain at the forefront of planning discussions.
SYNOPSIS: Non-qualified deferred compensation (“NQDC”)
plans are a promise by the sponsoring employer to pay part of
an executive’s compensation to the executive at a later date
(e.g., upon retirement or other termination of employment). In
Part 1 of this series (see WRM No. 17-41), we discussed the tax
and ERISA [Employee Retirement Income Security Act of 1974 —
inserted for clarity] rules fundamentals of the two main types of
NQDC plans: (1) defined contribution and (2) defined benefit.
Part 2 reviews a sponsoring employer’s funding options and
financial accounting considerations when implementing a NQDC
plan.
At the State Bar of Michigan's Upper Michigan Legal Institute 2014, attorney Marlaine Teahan spoke on various Probate and Estate Planning updates, including durable powers of attorney and the importance of including digital assets in estate planning.
PPT on Insolvency and Bankruptcy Code, 2016 analysis the jargons, processes, access, limitations, opportunities, etc. A bried comparison with US Bankruptcy Code has also been stated and addressing issues like cross border insolvency amongst others issues. Also, the probe of recently notified transfer of pending proceedings has been made in the presentation.
This paper is provided by NAPLIA.
The Investment Advisor’s Guide to Errors & Omissions Insurance will help you anticipate areas of underwriter concern as it relates to your specific investment practice, helping you internally evaluate your risk exposures and better define your activities and professional services.
Contingent liabilities, commitments and provisions in oil industryHamdy Rashed
What is the different between contingency, commitment and provision, how disclose the Joint venture minimum exploration payment or obligation in the financial statements
Founded in 2007, today Fulcrum Partners is one of the leading and largest executive benefits advisories in the U.S. This overview shows an outline of the Fulcrum Partners 7-Step Process, and how their team of financial industry executives help organizations with unique executive benefits needs.
SEBI - Consultation paper on review of the regulatory framework for debenture...Venkatesh Prabhu
To secure the interests of debenture holders of listed debt issues, Sebi Wednesday proposed a slew of measures to strengthen the regulatory framework for debenture trustees, including raising minimum net worth requirement for registration of such entities to Rs 10 crore from the current Rs 2 crore.
The DT can directly enforce the security without obtaining any consent from the debenture holders.
At the State Bar of Michigan's Upper Michigan Legal Institute 2014, attorney Marlaine Teahan spoke on various Probate and Estate Planning updates, including durable powers of attorney and the importance of including digital assets in estate planning.
PPT on Insolvency and Bankruptcy Code, 2016 analysis the jargons, processes, access, limitations, opportunities, etc. A bried comparison with US Bankruptcy Code has also been stated and addressing issues like cross border insolvency amongst others issues. Also, the probe of recently notified transfer of pending proceedings has been made in the presentation.
This paper is provided by NAPLIA.
The Investment Advisor’s Guide to Errors & Omissions Insurance will help you anticipate areas of underwriter concern as it relates to your specific investment practice, helping you internally evaluate your risk exposures and better define your activities and professional services.
Contingent liabilities, commitments and provisions in oil industryHamdy Rashed
What is the different between contingency, commitment and provision, how disclose the Joint venture minimum exploration payment or obligation in the financial statements
Founded in 2007, today Fulcrum Partners is one of the leading and largest executive benefits advisories in the U.S. This overview shows an outline of the Fulcrum Partners 7-Step Process, and how their team of financial industry executives help organizations with unique executive benefits needs.
SEBI - Consultation paper on review of the regulatory framework for debenture...Venkatesh Prabhu
To secure the interests of debenture holders of listed debt issues, Sebi Wednesday proposed a slew of measures to strengthen the regulatory framework for debenture trustees, including raising minimum net worth requirement for registration of such entities to Rs 10 crore from the current Rs 2 crore.
The DT can directly enforce the security without obtaining any consent from the debenture holders.
Whether the user is interacting with a mobile device, a web site, or a phone-based health technology system, there is often a large gap between what the user wants to accomplish and how they want to accomplish it, and what they actually get from the system. The interface can be challenging and capturing any feedback or user interactions is difficult using on keyboards and point and click tools. Speech Recognition is changing this interaction by capturing the clinical input and allowing clinicians and healthcare users to access systems that listen and responds seamlessly understanding the context and the intent turning what the users wants into what they get.
How to Prudently Hire and Retain a Discretionary Corporate TrusteeThe 401k Study Group ®
Most plan sponsors seek to have a retirement plan that provides adequate benefits to their employees, is easy to
administer, is compliant with ERISA fiduciary standards and protects the plan sponsor from legal and financial risk and liability. Working in conjunction with a knowledgeable retirement plan advisor, a discretionary corporate trustee is
uniquely suited to allow the plan sponsor to meet these goals.
Here is the PowerPoint for WEB NY's presentation on the DOL's fiduciary proposal. Speaker: George Sepakos of Groom Law Group, Chartered, September 17, 2015
MillenniuM Investment and Retirement Advisors, LLC (“MIRA”) is an unaffiliated ERISA defined independent fiduciary to 401(k) and other defined contribution plans.
In this posting they discuss their role in assisting Advsiors and Plan Sponsors with DOL and ERISA Compliance.
Investing Retirement Plan Assets: What Are The Limits?Bruce Givner
The Internal Revenue Code and the Title I of ERISA (administered by the U.S. Department of Labor) have restrictions on how retirement plan assets can be invested. For example, certain investments will cause UBTI (unrelated business taxable income) to what is otherwise a tax-exempt trust. Certain investments may cause prohibited transactions with the resulting excise tax under IRC Section 4975. There are also the general fiduciary rules governing trustees generally, e.g., the duty to diversify. This handout is designed to advise the trustee and the plan sponsor on how to avoid the pitfalls.
Powerpoint presentationDeliverable Length 5 - 7 slides with .docxChantellPantoja184
Powerpoint presentation
Deliverable Length: 5 - 7 slides with speaker notes of 200 - 250 words per slide (excluding Title and Reference slides) APA FORMAT
You, as a HR Generalist, have been asked by your HR Director for your recommendations in terms of what tools your organization could use to better manage the talents of your employees. This will help to develop policies and procedures in managing your human capital. Please develop a PowerPoint presentation to your Director addressing the following:
· Describe and analyze the broad range of talent management efforts that use software applications to help you Director to make an educated decision.
· Give some examples of firms that have successfully used these applications.
· Describe how these efforts are useful in terms of strategic human capital management.
Page | 1
Plaintiff in Pro Se,
ClearChoice Community Services Inc.
2736 Lyndale Ave S Suit e202
Minneapolis MN 55408
Telephone No.9522220251
STATE OF MINNESOTA
DISTRICT COURT
County of Hennepin
Judicial District:
Court File number:
Case Type:
ClearChoice Community Services Inc.
Plaintiff Pro Se
V
Caskecla Investment
THEODORE J MEYERS
JOHN DOE I-XX, et al.
Defendants
PARTIES TO THE ACTION
1. Plaintiff Pro se, ClearChoice Community Services Inc. (herein referred as Borrower/Plaintiffs) all times relevant have resided at 4816 Nicollet Ave S Minneapolis MN 55419
2. Defendant Caskecla Investment (herein after refreed to as Lender) having its place of business at 8271 SE Sanctuary Drive, Hobe Sound FL 33455
3. Defendant THEODORE J. MEYERS having its place of business at 1755 St. Marys Street lcon Heights MN 55113
4. Any allegations about acts of any corporate or other business of Defendants means that the corporation or other business did the alleged acts through its officers, directors, employees, agents and/or representatives while they were acting within the actual or ostensible scope of their authority.
5. At all relevant times, each Defendant committed acts, caused or directed others to commit the acts, or permitted others to commit the acts alleged in this Complaint; additionally, some of the Defendants acted as the agent for other Defendants, and all of the Defendants in connivance with each other acted within the scope of their agency as if acting as the agent of another.
6. Knowing or realizing that other Defendants were engaging in or planning to engage in unlawful conduct, each Defendant nevertheless cilitated the commission of those unlawful acts.
7. Each Defendant intended to and did encourage, cilitate or assist in the commission of the unlawful acts, and thereby aided and abetted the other Defendants in the unlawful conduct.
I. CTUAL BACKGROUND:
(a) In the present case, the Deed of Trust for the Property listed the borrower, as "ClearChoice Community Services Inc.," and listed the Lender, as "Caskecla Investment, “ The Caskecla Investment, was renamed Caskecla Investment and later on was clo.
Surety Industry Overview: State of the Industry by Cissie ScogginDon Grauel
Cissie Scoggin of Liberty Mutual Insurance presented "Surety Industry Overview: State of the Industry" to the 68th Annual F. Addison Fowler Fall Seminar on October 17, 2014.
On 12th November 2014 Gordon Stuart presented at the Kruger Lowveld Chamber of Business and Tourism networking breakfast. The topic under discussion was “Trusts and Wills – ‘A legacy or Liability’ - Pitfalls in Estate planning.
Negotiating and Drafting Cash Collateral/DIP Financing Orders (Series: Bankru...Financial Poise
Every company needs access to cash to fund its operations. Companies in bankruptcy are no different. But how should a company planning to enter bankruptcy approach this issue if all of its cash is tied up by a secured lender? What will a bankruptcy judge say when the company asks her permission to use cash on terms presented by its lender? How should lenders, debtors, and creditors approach negotiations over the terms of a cash collateral order or debtor-in-possession (DIP) financing agreement? For 2021, professionals must also understand the impact that the economic programs enacted under the CARES Act may have on the use of cash by a commercial debtor during its case. This webinar focuses on answering these questions for advanced business reorganization practitioners and advisors from the perspective of all parties to a negotiation, as well as addressing best practices in drafting, negotiating, and presenting cash collateral and DIP financing orders in complex reorganization proceedings.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/negotiating-and-drafting-cash-collateral-dip-financing-orders-2021/
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
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Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
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1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Tdasx: Unveiling the Trillion-Dollar Potential of Bitcoin DeFi
Presentation on Florida Delegated Trust Statute
1. 33
11
CORPORATE HEADQUARTERS
255 ALHAMBRA CIRCLE, SUITE 333
CORAL GABLES, FL 33134
DIRECT: 305.443.2544
OFFICE: 786.497.1212
FAX: 786.497.1717
TOLL FREE: 1.855.768.7878
WEST PALM BEACH OFFICE
500 SOUTH AUSTRALIAN AVE., SUITE 620
WEST PALM BEACH, FL 33401
OFFICE: 561.820.4844
FAX: 561.820.4846
FORT LAUDERDALE OFFICE
401 E. LAS OLAS BLVD., SUITE 1400
FT. LAUDERDALE, FL 33301
OFFICE: 954.707.6899
FAX: 954.400.5892
WWW.CGTRUST.COM
3. 3
Richard DeNapoli has over 14 years of experience in law and trust
services. Prior to joining Coral Gables Trust he worked as a Trust and
Investment Officer for more than five years at Northern Trust on a team
with $1.8 Billion assets under management providing services to high net
worth individuals, and then as a Vice-President at MEMBERS Trust
Company with over $1.8 Billion in assets under management. Prior to
joining Northern Trust, Richard practiced law successfully in his own
practice working with clients primarily on estate planning and real estate
matters. Richard is a graduate of the University of Miami School of Law
(2008, LL.M., Estate Planning), Fordham Law School (2002, J.D.) and
New York University (1999, B.A., Politics; B.A. Italian). He is licensed to
practice law in Florida and the United States District Court for the Southern
District of Florida. Richard has also been successful in obtaining his
CERTIFIED FINANCIAL PLANNER(TM) certification. In 2007, Richard
DeNapoli was appointed as a Commissioner to the Florida Real Estate
Commission (“FREC”), and subsequently reappointed when that term was
up. Both of his appointments to the FREC were confirmed by the Florida
Senate. He was unanimously elected to serve as the Chairman of the
Florida Real Estate Commission from 2010-2011, and he continued to
serve on the Commission for two terms over six years through December
2013. Richard is also a longtime member of the Real Property Probate
and Trust Law Section of the Florida Bar.
4. 4
TABLE OF CONTENTS
Delegation v. Directed Trust (Powers to Direct Under Section
736.0808)
Benefits of Delegation and Practical Considerations
Florida Delegation Statute Section 736.0807
Delegation of Investment Functions Under Section 518.112
Notice of Delegation
Ongoing Duties of Trustee After Delegation of One or More Powers
5. 5
Delegation v. Direction
Delegated and Directed are two terms that are often confused in marketing
1. Directed Trust: 736.0808 (see in your packet)
Generally when the trust document itself splits the duties (i.e., investment functions from
administrative trustee functions) between different fiduciaries
(1) Trustee can take direction from the Settlor, even when contrary to the terms of the
trust while a trust is revocable
(2) The terms of the trust may provide a power to direct for someone other than the
settlor, and the trustee shall act in accordance with this direction (and the trustee’s
liability is thus limited) “unless the attempted exercise is manifestly contrary to the
terms of the trust or the trustee knows the attempted exercise would constitute a
serious breach of fiduciary duty.”
(a) Different standard from that set forth in the Florida delegation statute
2. Delegation:
When the trustee delegates duties and powers to another provider/fiduciary, including
investment functions to a separate financial advisor.
6. 6
Benefits of Delegation and Practical Considerations
1. Individual Trustees:
I. May lack skills needed to perform required Trustee duties, such as day to day investment
management
2. Corporate Trustee
I. May have investment capabilities, but not with regard to all asset classes
II. Settlor or beneficiaries may have a strong connection with an outside investment advisor
and wish to continue that relationship
a) Outside Advisors often do not or cannot act as Trustee
b) Outside advisor might manage other investments on behalf of the settlor and/or
beneficiaries
3. Pros and Cons:
Pros: 1) portability for the advisor as they move firms 2) revisions to estate planning documents.
Pros and cons of Delegation by a trustee should be weighed when an investment portfolio
contains special assets, such as non-marketable or closely help entities, real estate, asset
concentrations. Does the trust document provide guidance?
7. 7
Florida Delegation Statute Section 736.0807
736.0807 Delegation by trustee.—
(1) A trustee may delegate duties and powers that a prudent trustee of comparable skills
could properly delegate under the circumstances, including investment functions pursuant
to s. 518.112. The trustee shall exercise reasonable care, skill, and caution in:
(a) Selecting an agent.
(b) Establishing the scope and terms of the delegation, consistent with the purposes and
terms of the trust.
(c) Reviewing the agent’s actions periodically, in order to monitor the agent’s
performance and compliance with the terms of the delegation.
(2) In performing a delegated function, an agent owes a duty to the trust to exercise
reasonable care to comply with the terms of the delegation.
(3) A trustee who complies with subsection (1) and, when investment functions are
delegated, s. 518.112 is not liable to the beneficiaries or to the trust for an action of the
agent to whom the function was delegated.
History.—s. 8, ch. 2006-217; s. 6, ch. 2009-117; s. 13, ch. 2013-172.
8. 8
Florida Delegation Statute Section 736.0807
Key Provisions:
(1) A trustee may delegate duties and powers that a prudent trustee of
comparable skills could properly delegate under the circumstances …
Actions of a “Prudent Trustee of Comparable Skills”
• Comparable skills suggests that a corporate trustee would be held to
a higher standard than an individual trustee
• Both individual and corporate trustees can delegate powers, even if
corporate trustee has its own investment capabilities
9. 9
Florida Delegation Statute Section 736.0807
Key Provisions Continued:
Section (1) - … including investment functions pursuant to s. 518.112.
• In the first section, it references investment functions.
The Trustee shall …
“…exercise reasonable care, skill, and caution in:”
(1)(a) Selecting an Agent
What should be considered reasonable and best practices for these purposes?
1) Investigation of proposed agent
2) Other possible agents of similar skills—how many?
3) How much evidence should be obtained and on what specific topics for an
investment agent?
i. Investment performance over time
ii. Reputation in business community (ex. Broker Check on Finra)
iii. Personnel
iv. Fees
4) Real estate agent
5) Valuation agent for closely held or other hard to value assets
6) Other agents a trustee might retain
10. 10
Florida Delegation Statute Section 736.0807 continued
Key Provisions: “Exercise Reasonable Care, Skill, and Caution in:”
(1)(b) Establishing the Scope and Terms of Delegation
1. For investment agent
2. Risk profile of trust and its beneficiaries
3. Investment policy statement
4. Compliance with terms of trust
5. Limitations on the terms of the delegation
11. 11
Florida Delegation Statute Section 736.0807 continued
Key Provisions: “Exercise Reasonable Care, Skill, and Caution in:”
(1)(c) Reviewing the agent’s actions periodically, in order to monitor the
agent’s performance …
Investment and Other Agents
• Periodic statements with holdings, purchases and sales and
performance data
• Appropriate frequency
• Comparison to investment policy statement
• Non-performance issues
12. 12
Florida Delegation Statute Section 736.0807
Key Provisions Continued:
(2) In performing a delegated function, an agent owes a duty to the
trust to exercise reasonable care to comply with the terms of the
delegation.
Duties of Agent
1. Reasonable Care
2. Compliance With Terms of Delegation
13. 13
Florida Delegation Statute Section 736.0807
Limitations on Liability of Trustee
(3) A trustee who complies with subsection (1) and, when investment
functions are delegated, s. 518.112 is not liable to the beneficiaries or to the
trust for an action of the agent to whom the function was delegated.
• Is Trustee the Client of the Agent or are the Beneficiaries of the
Trust the clients of the Agent?
• Who is Entitled to Sue?
1. Evidence supporting compliance with Fla. Stat. Sec. 736.0807 and
Fla. Stat. Sec. 518.112, if applicable, will relieve trustee of liability to
beneficiaries for actions of agent
2. Good record keeping is critical to limit liability
a) Documents obtained at point of hire of agent
b) Documents obtained during course of delegation
c) Evidence of periodic review of agent’s performance
14. 14
Delegation of Investment Functions Under Section 518.112
(1) Provisions for selection of investment agent, establishment of scope and
terms of delegation and monitoring of performance and compliance parallel
requirements set forth in Fla. Stat. Sec. 736.0807
(2) Insurance Trusts and Delegation of Investment Responsibility for Insurance
Contracts per Fla. Stat. Sec. 518.112(2)(a)
1. Delegation can be to a variety of parties per the statute, depending
on specific circumstances
2. Typically delegation is to one or more of the beneficiaries of an
irrevocable life insurance trust
3. Wide range of insurance contract functions are delegable under the
statute
4. Statute relieves trustee of “any continuing obligation to review the
agent’s actions” with regard to the insurance contract
15. 1515
Notice of Delegation
(3) A fiduciary may delegate investment functions to an investment agent under
subsection (1) or subsection (2) if:
(a) Guardianships:
• Must first obtain Court Approval
(b) Trust or Estate:
STEPS:
1. Must give Written Notice within 30 days of delegation
2. All Beneficiaries or their Legal Representatives
• Unclear since mentions “eligible” beneficiaries and references
“beneficiaries eligible to receive income”
• Notice, once given, remains in place until revoked
(b)(1) Future Beneficiaries Covered
Waiver of Notice—is this a wise choice?
16. 16
Notice of Delegation
518.112(3)(b)(3) Methods of Notice
Part III of Section 731 for estates
736.0109 and Part III of 736 for trusts
The methods per 736.0109(1) (attached)
a) First class mail
b) Personal delivery
Other options for proof of delivery:
• Certified mail
• Express mail services
Subsection (3) details Electronic posting methods
• Complex requirements
• Evidence that notice has been sent
i. Copy of letter
ii. Certified mail receipt
iii. Express mail service acknowledgement of receipt
iv. Electronic posting receipt
17. 17
Notice of Delegation cont.
518.112(4) If all the notice requirements of subsection 3 of this
statute are satisfied, then the fiduciary shall not be responsible
otherwise for the investment decisions nor actions or omissions
of the investment agent to which the investment functions are
delegated.
518.112(5) The investment agent, shall, by virtue of acceptance
of its appointment, be subject to the jurisdiction of the courts of
this state.
518.112(6) In performing a delegated function, the investment
agent shall be subject to the same standards as the fiduciary.
So…in performing the investment functions, the investment
agent takes on a fiduciary responsibility.
18. 18
Practical Considerations
1. Communication Between and among Parties
a) Investment Agent is Hired by Trustee
b) Investment Reports to Settlor and/or Beneficiaries
c) Separate Reports from Trustee
d) Changes in Portfolio
i. Risk Analysis
ii. Asset allocation and Changes to Investment Policy Statement
2. Parameters for communication need to be established at onset of
delegation so that all parties have reasonable expectations of how
communication will occur and how and by whom decisions will be made.
18
19. 19
Practical Considerations
Custody of Trust Assets
1. Under direct control and custody of trustee
i. Investment agent acts as third party and gives direction for
trades which are executed by the trustee
ii. Record keeping and reporting simplified
2. Under control and custody of third party investment agent-so called “held away”
accounts
i. Separate reporting from trustee and from investment agent
ii. To whom are reports sent?
iii. Who has the duty to report to the settlor and/or the beneficiaries
of the trust?
21. 21
Ongoing Duties of Trustee After Delegation of One or More Powers
1. Trust Interpretation
2. Reporting to all Qualified Beneficiaries
3. Record Keeping
4. Income and Principal Distributions and Related Discretionary
Actions
5. Tax Returns and Tax Reporting