The question of aligning trust investments with family values is increasingly common, reflecting a growing desire for socially responsible investing (SRI) and Environmental, Social, and Governance (ESG) considerations. While traditionally trusts were governed solely by fiduciary duty to maximize financial returns, modern estate planning often incorporates personal beliefs and values. Steve Bliss, an attorney specializing in trusts and estate planning in Escondido, understands this shift and can help clients structure their trusts to reflect these priorities, but it requires careful planning and documentation. Approximately 68% of millennials are said to be interested in ESG investing, demonstrating a significant generational shift in investment preferences.
What are the legal considerations for values-based trust investing?
Legally, a trustee has a fiduciary duty to act in the best interests of the beneficiaries, which traditionally meant prioritizing financial returns. However, courts are increasingly recognizing that ‘best interests’ can include the settlor’s (the person creating the trust) values, *if* those values are clearly stated in the trust document. Steve Bliss emphasizes the importance of explicitly outlining these values in the trust agreement. This might involve specifying industries to avoid (e.g., tobacco, firearms) or industries to prioritize (e.g., renewable energy, sustainable agriculture). Without clear direction, a trustee could be held liable for prioritizing values over returns, even if that was the settlor’s intent. The Uniform Prudent Investor Act (UPIA), adopted in most states, allows for consideration of the settlor’s charitable or social interests when making investment decisions.
How can I ensure my values are actually implemented?
Implementing values-based investing requires more than just a statement of intent. It necessitates a detailed investment policy statement (IPS) within the trust document. This IPS should define precisely what constitutes “alignment” with family values. For example, it could include specific ESG ratings benchmarks, screening criteria, or impact investing goals. The IPS might stipulate that no more than 10% of the trust’s assets can be invested in companies with poor environmental records, or that a certain percentage must be allocated to companies actively working to address social issues. Steve Bliss will work with clients to create a customized IPS that reflects their unique values and investment objectives. “It’s about turning broad principles into concrete guidelines,” he explains.
What happened when a family’s wishes weren’t clearly defined?
Old Man Tiberius was a quiet man, a craftsman of fine woodworking, and he deeply believed in supporting local businesses and environmentally sustainable practices. He created a trust for his grandchildren, intending for the funds to be invested responsibly, but his trust document simply stated a desire for “ethical investments” without specifying what that meant. After Tiberius passed, the trustee, unfamiliar with his values, invested heavily in a large, multinational corporation known for its aggressive business practices and minimal environmental oversight. The grandchildren, learning of the investments, were distraught. They felt the funds were betraying their grandfather’s principles and causing harm to the very causes he championed. A costly legal battle ensued, draining trust assets and causing significant family conflict. It was a sad example of good intentions lost due to a lack of clear documentation.
How did careful planning save another family’s legacy?
The Ainsworth family, passionate about education and renewable energy, worked with Steve Bliss to create a trust that explicitly prioritized investments in these areas. Their trust document included a detailed IPS that outlined specific ESG criteria, impact investing targets, and a list of industries to avoid. It also established a process for regular review and adjustment of the investment portfolio to ensure ongoing alignment with their values. Years later, the Ainsworth grandchildren, now adults, were pleased to learn that the trust had not only grown substantially but had also funded several scholarships for students pursuing degrees in environmental science and supported several innovative renewable energy projects. Their grandfather’s legacy was not just about financial security, but about making a positive impact on the world, and Steve Bliss had helped them achieve that.
<\strong>
About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
banckruptcy attorney
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
>
Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “What is a pour-over will and when would I need one?” Or “How does the probate process work?” or “Can I name more than one successor trustee? and even: “How long does bankruptcy stay on my credit report?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.