Managing a Trust for brother

[ncbill]

OP could serve as a trust protector for their brother's trust.

Overseeing the conduct of whatever professional trust management runs it.

And with the power to change management of the trust to a different firm if misconduct occurs.

What is a Trust Protector and Do I Need One? Estate Planning Tips

Even if OP declines any role they should encourage the grantor to appoint a 3rd party trust protector.

Usually a lawyer or law firm independent of the firm actually managing the trust.

 

[OldShooter]

OP could serve as a trust protector for their brother's trust.

Overseeing the conduct of whatever professional trust management runs it.

And with the power to change management of the trust to a different firm if misconduct occurs.

Agreed. I thought about that but forgot to write it down. As I understand it, the Trust Protector concept is being adopted by state legislatures but it is not universal. A Nevada specialist attorney would know how/if/when it could be done there.

 

[albireo13]

I have a rule ...
Don't mix family and finances.
If you do, get ready for drama and intrigue down the road.

While it seems equitable, I wouldn't touch that with a ten foot pole!
Life is too short to be hooked into this arrangement.
Go for a walk, buy a latte, and enjoy yourself!

 

[temartin]

I manage two trusts for my family. The beneficiaries are simple, just me and my two brothers. We get along well, and are all financially successful, well beyond the value of the trusts. And the trust will dissolve with the death of the sole remaining parent.

That being said, I wouldn't touch your proposed trust with a ten foot pole. Given the huge money involved, and the number of beneficiaries, and the fact that it is multi-generational, I guarantee someone will want "more" and you'll be dealing with lawsuits. I don't envy dealing with the tax forms yourself either, I guess you could hire experts.

My advice is pass and let a non-family fiduciary (Fidelity or whoever) deal with it.

 

[Dtail]

Not easy decisions at all.
On a very much lower level, I am in charge of my brothers' irrevocable trust, plus all his assets overall. I do not receive any fees for the management of it. I DIY every aspect of it.
Not too much work but OTOH the overall NW is very low 7 figures. Plus he lives with us.

 

[yclipse]

Do you have the expertise to manage a fund of this size? Can you make sound investment decisions and justify your decisions if it turns out the choices you made did not go as expected?

> He suggested it would just all go into one or a few index funds and that's it.

That seems grossly naive.

A corporate trustee earns its fee for managing the money and the investments. Following the directives of the settlor on distributions to various beneficiaries is a part of the job but is definitely secondary.

You would at least want to have insurance coverage, paid by the trust, to protect you from claims by your brother or by his intended beneficiaries in the event of a problem or loss.

 

[marko]

Do you have the expertise to manage a fund of this size? Can you make sound investment decisions and justify your decisions if it turns out the choices you made did not go as expected?

> He suggested it would just all go into one or a few index funds and that's it.

That seems grossly naive.

A corporate trustee earns its fee for managing the money and the investments. Following the directives of the settlor on distributions to various beneficiaries is a part of the job but is definitely secondary.

You would at least want to have insurance coverage, paid by the trust, to protect you from claims by your brother or by his intended beneficiaries in the event of a problem or loss.

Naive and unfair. Again, how anyone who amassed this amount of first generation money can be so amaturish here is mind boggling.

 

[OldShooter]

Naive and unfair. Again, how anyone who amassed this amount of first generation money can be so amaturish here is mind boggling.

I think we're going to find that the situation is not really the way the OP understood it at the beginning.