Yes, you absolutely can and often should, direct your trustee to align investments with your personal values, including avoiding industries like weapons manufacturing within your Community Property Trust (CRT) or any other type of trust, however it requires careful consideration and clear documentation; this isn’t simply a preference, but a legally enforceable instruction when properly established.
What are the implications of socially responsible investing?
Socially responsible investing (SRI), also known as impact investing, has gained significant traction, with assets under management exceeding $50 billion as of 2023; it reflects a growing desire among individuals to use their financial resources to support positive change. Directing your trustee to avoid specific sectors, like weapons manufacturing, aligns with this principle, but requires precise language in your trust document; vague instructions can lead to disputes or unintended consequences. It’s important to remember that excluding certain sectors *may* impact potential returns, so a thorough discussion with your trustee and financial advisor is crucial; many ESG (Environmental, Social, and Governance) funds offer diversified portfolios that avoid controversial industries while still aiming for reasonable growth.
How do I legally restrict investments within my trust?
The key lies in the trust document itself; you must include a clear and unambiguous “negative screen” or exclusion clause specifying the industries or types of investments you wish to avoid. For example, you might state: “The Trustee shall not invest in any entity that derives more than 5% of its revenue from the manufacture or sale of firearms or related military equipment.” This level of specificity provides concrete guidance to the trustee and minimizes ambiguity. It’s crucial to avoid overly broad language, such as “no unethical investments,” as this is subjective and unenforceable; a well-drafted clause will also address what happens if an existing investment *becomes* involved in the prohibited activity – does the trustee immediately divest, or is a grace period allowed?
What happened when a family failed to specify investment restrictions?
Old Man Tiberious was a kind but stubborn man who believed in the power of clear communication, but when it came to his trust, he left things unsaid. He verbally told his trustee, his nephew, that he wanted nothing to do with investments that profited from harm. His nephew, meaning well but overwhelmed with managing the trust, interpreted this loosely, allowing a small percentage of the trust funds to be invested in a defense contractor. Years later, Tiberious’ daughter discovered this, causing a rift in the family and a costly legal battle. It wasn’t about the money, but the violation of her father’s deeply held beliefs. It became a lesson learned; verbal instructions are insufficient and the best approach is clear, written directives within the trust document.
How did clear directives save another family from conflict?
The Millers were a forward-thinking family, and when they created their CRT with Steve Bliss, they explicitly stated that no funds should be invested in companies involved in the production of weapons or tobacco. Years later, when a potential investment in a diversified fund arose that *contained* a small percentage of shares in a defense contractor, the trustee immediately flagged it. They contacted the Millers, explained the situation, and, following the clear instructions in the trust, opted for an alternative investment. The Millers were grateful for the transparency and the peace of mind knowing that their values were being upheld. This proactive approach prevented any conflict and solidified the trust relationship. It highlighted the importance of a carefully crafted trust document that acts as a roadmap for the trustee, ensuring that the grantor’s wishes are honored.
Ultimately, the ability to mandate restrictions on your CRT investments is a powerful tool for aligning your financial resources with your values. However, it requires careful planning, precise language, and open communication with your trustee to ensure that your wishes are not only documented but also effectively implemented.
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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:
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Map To Steve Bliss Law in Temecula:
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “Can I change my will after I’ve written it?” Or “How is probate different in each state?” or “How do I fund my trust with real estate or property? and even: “Will I lose everything if I file for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.