The Essentials of Holding and Diversifying Trust Assets
As trustee, you’re responsible for investing the trust property, giving the principal a chance to grow. To carry out your role, you need to know the different types of assets that you may be responsible for as a trustee and, where appropriate, what you must do to ensure that they’re diversified. The assets addressed here span stocks, bonds, mutual funds, cash on hand, real estate, and small business stocks.
Investing in the stock market is a popular way to produce income from trust principal for the trust’s income beneficiaries. Stocks, sometimes referred to as equities, are ownership interests in corporations [more…]
Bonds are pieces of loans, packaged by a corporation or a government as investment product. When you purchase a bond, you’re purchasing a piece of someone else’s debt. In exchange for the money you’re [more…]
Investing in bonds can be one of the safest and easiest ways to invest, yet many people shy away from these investments because they may not understand all the words used in their descriptions. This article [more…]
In a mutual fund, a group of like-minded investors pool their money, hire an advisor, and allow the advisor to invest the pooled cash in a way that’s been determined by the investors. In exchange for the [more…]
As much as you want to maximize the income being earned by the trust’s principal, you need to keep some cash on hand at all times for both expected and unexpected expenses. Expected expenses include scheduled [more…]
Often, the grantor’s residence may end up in the trust, either during lifetime or after the grantor’s death. Or, the grantor may have held interests in either residential or commercial real estate, either [more…]