AGENT FOR FIDUCIARY
JULY 2013
Chris Heilmann, Chief Fiduciary Executive
Agent for Fiduciary is when an individual who is either serving as a trustee of a
trust or as an executor or personal representative of an estate engages a third
party such as U.S. Trust to assist them with the asset management and
administration of that trust or estate responsibility.
This is important because there's a national trend in the industry today of naming
individuals and family members to serve in a fiduciary capacity either as trustees
or as executors or personal representatives of estates.
The responsibility that these individuals take on in assuming that role are
substantial. And our ability as an institution to assist them in fulfilling those
responsibilities is what Agent for Fiduciary is really all about.
Naming individuals to serve in a fiduciary capacity does have its risks. And the
risks primarily include an individual who may feel an obligation to serve as the
fiduciary but just simply is not either prepared or equipped to fulfill their
responsibilities or in many instances just don't have the time to do so.
Further, when you place an individual in a fiduciary capacity in some instances
working with other family members and making decisions to distribute money
you actually can put them at personal conflict with family members.
U.S. Trust, as one of the oldest and largest trust companies in the country, has
the depth of experience to work with individuals to assist them in fulfilling their
responsibilities either as a trustee or as an executor or personal representative.
It's important to recognize that when U.S. Trust does work with an individual in a
fiduciary capacity that individual can feel that they are fulfilling the obligation
that they have accepted in serving as trustee. Because they continue to retain
control and they determine the level of service and the extent to which U.S.
Trust's expertise can help them.
One family that we are working with for example involves three siblings as cotrustees. They have engaged U.S. Trust to be their agent. Our role is to assist
them with asset management as well as working with them to fulfill the
responsibilities that they have to over 20 beneficiaries all of whom are family
members.
We provide them with guidance on how U.S. Trust would look at making
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decisions on discretionary distributions that then gives them comfort that the
manner in which they exercise their discretion is appropriate.
At U.S. Trust we understand that families are complex. And we understand that
individuals who accept the responsibility to serve in a fiduciary capacity take that
very seriously. Their ability to work with U.S. Trust in order to leverage the
depth, experience and expertise that we can offer them in working together to
fulfill that responsibility is what gives them comfort and peace of mind.
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U.S. TRUST | AGENT FOR FIDUCIARY
IMPORTANT INFORMATION:
Opinions expressed herein are those of the featured participant, U.S. Trust, and may differ from those of Bank of America Corporation and its affiliates. The information
presented in this video is for discussion purposes only and is not intended to serve as a recommendation or solicitation for the purchase or sale of any type of security. This
video does not constitute investment advice and is issued without regard to specific investment objectives or the financial situation of any particular recipient.
This video is designed to provide general information about ideas and strategies. Always consult with your independent attorney, tax advisor, investment manager, and
insurance agent for final recommendations and before changing or implementing any financial, tax, or estate planning strategy.
The case study presented is hypothetical and does not reflect specific strategies we may have developed for actual clients. It is for illustrative purposes only and intended
to demonstrate the capabilities of U.S. Trust, Bank of America Private Wealth Management and/or Bank of America. It is not intended to serve as investment advice since
the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Results will vary, and no suggestion is made about how any
specific solution or strategy performed in reality.
U.S. Trust operates through Bank of America, N.A., and other subsidiaries of Bank of America Corporation. Bank of America, N.A. and U.S. Trust Company of Delaware
(collectively the “Bank”) do not serve in a fiduciary capacity with respect to all products or services. Fiduciary standards or fiduciary duties do not apply, for example, when
the Bank is offering or providing credit solutions, banking, custody or brokerage products/services or referrals to other affiliates of the Bank.
Bank of America, N.A., Member FDIC.
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