What You Should Know About Family Advancement Sustainability Trusts

Many people create estate plans to achieve certain financial objectives, but it is just as important to make sure that estate plans can satisfy “softer” goals. Because a person spends a life acquiring their wealth, it is a good idea to inform children as well as other loved ones about how to manage assets responsibly. You might also decide to utilize an estate plan to promote shared values and encourage giving back to the community. One of the best ways to satisfy these goals is to utilize a family advancement sustainability trust.  Family advancement sustainability trusts are created in states that permit “dynasty” trusts that benefit several generations and which have directed trust statutes that make it possible to appoint either an advisor or committee to direct a trustee. A directed trust statute makes it possible for both family members and trusted advisors to participate in both the governance and management of a trust. Common Structures for These Trusts A common structure for one of these trusts includes four entities with the ability to make decisions including an administrative trustee, an investment committee, a distribution committee, and a trust protector committee. These trusts can also help to create a leadership [...]