Absolutely, you can restrict investment in specific industries through your trust, and it’s a surprisingly common request, reflecting a desire to align investments with personal values and ethical considerations.
What are “Socially Responsible Investing” (SRI) options?
Many individuals are now prioritizing socially responsible investing (SRI), also known as impact investing, where investments are made with the intention of generating positive social and environmental impact alongside financial returns. According to the Forum for Sustainable and Responsible Investment, SRI assets now account for over $17 trillion of the $51.4 trillion in total U.S. assets under management as of early 2020. Your trust document can specifically exclude investments in industries like tobacco, firearms, fossil fuels, or any sector that conflicts with your beliefs. This can be achieved through carefully worded clauses that instruct your trustee to avoid certain types of investments, allowing for a portfolio tailored to your ethical preferences. It’s crucial to define these exclusions clearly within the trust document to avoid ambiguity.
How does a “Trust Protector” help with evolving values?
One often overlooked aspect of trust design is the role of a Trust Protector. A Trust Protector is a designated individual (or entity) with the power to modify the trust document under specific circumstances. This is exceptionally useful when it comes to investment restrictions because values and societal norms evolve. Imagine you establish a trust restricting investment in fossil fuels, but twenty years later, carbon capture technology becomes viable and potentially beneficial. A Trust Protector can amend the trust to allow for investment in companies developing this technology, providing flexibility while still upholding your core values. Without this flexibility, the trust could become outdated and fail to reflect your current wishes. The Trust Protector ensures the trust remains relevant and effective over time.
What happens if I don’t specify investment restrictions?
I remember Mr. Henderson, a retired teacher, who established a trust but didn’t specify any investment restrictions. He was a staunch advocate for environmental protection and would have been horrified to learn that a significant portion of his trust was invested in a large oil company. After his passing, his family discovered this and were deeply upset, feeling it violated his principles. The situation created significant family conflict and legal expenses as they attempted to rectify the investment allocation. Had Mr. Henderson included clear investment restrictions in his trust, this emotional and financial burden could have been avoided. Approximately 68% of individuals do not fully consider their values when establishing trusts, leading to similar disconnects between wealth and personal beliefs.
Can a trust ensure my wealth aligns with my ethics long-term?
Mrs. Davison, a passionate animal rights activist, came to me determined to ensure her wealth would never indirectly support industries that harmed animals. We crafted a trust that not only excluded investment in companies involved in animal testing or the fur trade but also included provisions for charitable donations to animal welfare organizations. We included a clause allowing the trustee to actively seek out impact investments that supported ethical and sustainable practices within the agricultural sector. Years later, her family reported that her trust was not only financially successful but also a powerful expression of her lifelong commitment to animal welfare. This illustrates how a well-designed trust can seamlessly integrate financial goals with deeply held ethical values. It’s about leaving a legacy that reflects not just *how much* wealth you accumulate, but *how* it’s used.
“A trust is more than just a legal document; it’s a reflection of your values and a roadmap for your legacy.”
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
banckruptcy attorney
Map To Steve Bliss Law in Temecula:
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “What are the risks of not having an estate plan?” Or “What happens if the will names multiple executors?” or “Who should I name as the trustee of my living trust? and even: “What is a bankruptcy discharge and what does it mean?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.