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Wednesday, August 17, 2016

Investment Policy Statements

An Investment Policy Statement is basically a summary Financial Plan and roadmap for the investments of a Trust / Estate / Conservatorship.  It is a critical tool that provides a great deal of protection for the Fiduciary.  If all of the assets you are managing are in a brokerage account with an experienced Financial Planner you probably have something like this already in place.

But in many situations the assets are not so conventional or held in one place and as a result diversification and suitability can be difficult to prove - particularly if the Fiduciary is the subject of litigation in the future.  The attorney, CPA and Financial Advisor (if they are capable) should get together every year or two and create a joint Investment Policy Statement to protect the interests of the Fiduciary.  By considering the needs of the beneficiary(ies) and the likely streams of income and expenses in the future a justification for holding non-diversified or non-traditional assets can often be found.

And if the review indicates that the investments are truly not justifiable - it is better to know now rather than after the Fiduciary has been named in litigation.




The Tonkovich Law Firm assists clients with Estate Planning, Wills, Trusts, Durable Powers of Attorney, Conservatorship and Contested Probate Procedures and Business and Real Estate Litigation in Irvine, CA as well as El Toro, Aliso Viejo, Lake Forest, Laguna Hills, Tustin, Newport Beach, Santa Ana, Newport Coast, Ladera Ranch, Foothill Ranch, Mission Viejo, Laguna Woods, Corona Del Mar, Silverado, Orange, Laguna Beach, Rancho Santa Margarita amd Fountain Valley in Orange County.



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