The FiduciaryRelief Act™

Navigate the two parables here that successful
people often face when seeking financial structure.

Can you relate to these common financial roadblocks?

Wealthy Patriarch

Wealthy Patriarch of the Smith Family with Multigenerational Family Issues

Scenario

• Father with three children who are all married and have children.
• Multiple investment accounts in the father’s name and in various trust names.
• Most of the assets are meant to pass on to the next generation and some are to go two generations down
• A small percentage of the assets provide support for the father
• A trusted family member has been given primary responsibility and serves as the go-between on all issues involving these investment accounts

• Multiple time horizons on various accounts
• Uncertainty about legalities and authority on accounts – who can direct the advisor on each account
• Communication between multiple beneficiaries and family members in different states
• Several second and third generation beneficiaries make sporadic requests for distributions

Challenges

• Current estate documents not up to date with latest regulatory changes
• Authorizations to act on behalf of the father not acceptable to financial institutions

Goals

• Proper documentation and authority in place to allow efficient, legally authorized management of accounts
• Proper investments and cash to meet the specific needs of each account and all beneficiaries
• Reduce stress of a trusted family member

Solutions for the Smith Family

• The Smith family now has an investment policy statement for each account, or group of accounts that have similar time horizons and beneficiaries.
• They have regular meetings in person or by web conferencing for those that are not local.
• Their financial advisor coordinates and hosts meetings with their estate attorneys to help ensure that all their family goals are met.
• The Smith family has a communication plan with a trusted advisor who is available to work with all involved family members.

Executive Director

Executive Director of XYZ, Inc., a Not for Profit organization

Scenario

• Fast growing organization that serves the needs of disabled elderly citizens
• Investment committee and executive director have responsibility for management of organization’s funds
• Multiple committees that can request funds for their projects and needs
• Multiple investment accounts with various goals
• Executive director serves as the go-between on all issues involving investment accounts and requests for funds

Complexities

• Large Board in place and members lack confidence in Investment Committee
• Multiple time horizons on various accounts
• Large cash balances
• Disagreement among Investment committee members regarding investments and cash balances
• Uncertainty about legalities and authority on accounts – who can direct the advisor on each account
• Communication difficult between distant board members and investment committee
• Committees each have different procedures for distribution requests

Goals

• Proper documentation and authority in place to allow efficient, legally authorized management of accounts
• Proper investments and cash to meet the specific needs of each account and funding of projects and organization support
• Reduce stress for investment committee and executive director

Solutions for XYZ Inc.

• XYZ Inc. now has an investment policy statement for each account considering cash needs, investment time horizon and unique goals for funds.
• Their executive director and board or investment committee have regular meetings with their financial advisor in person or by web conferencing.
• XYZ Inc.’s trusted advisor helps collaborate with their attorneys on issues and document updates as needed.
• A customized communication plan between their trusted advisor and committee members results in increased confidence and efficiency for the executive director.