How do I choose an investment advisor to assist with a probate or trust administration?

As you administer a trust or an estate, you may find yourself responsible for investing assets. This is an important responsibility that cannot be taken lightly. Fortunately, trustees and personal representatives are often entitled to seek guidance from professional advisors. This includes attorneys, accountants, and financial advisors. Choosing the right financial advisor to assist you can feel overwhelming with so much at stake.

8 Guidelines for Selecting an Investment Advisor During a Trust or Estate Administration

As you begin the process of choosing an investment advisor, consider the following guidelines:

  1. Consult with an experienced trust and estate administration attorney. Often, an attorney can help you choose an investment advisor to assist in carrying out your responsibilities.
  2. Seek recommendations from a trusted tax advisor.
  3. Review the credentials of any potential candidates. Be certain to review any special certifications that the investment advisor may have that may be beneficial when managing the assets of a trust or an estate.
  4. Ensure that the investment advisor is familiar with the unique guidelines and rules that apply to trustees and personal representatives when investing the assets of a trust or an estate.
  5. Ensure that the investment advisor is familiar with the California Probate Code and the Uniform Prudent Investor Act. As a fiduciary, you may be bound by these laws; therefore, your investment advisor must be familiar with their terms.
  6. Ensure that the investment advisor is comfortable reviewing a trust and is familiar with the terms of the trust that you are in charge of administering.
  7. Choose an investment advisor who is responsive and communicates well and clearly.
  8. Select an investment advisor who is responsible and diligent. Ultimately, it is your responsibility to manage and invest the trust assets, so it is crucial to find an investment advisor who will help, and not hinder, the administration process.

To learn more about administering a trust or an estate, contact us today at (714) 459-5481.