Peak Trust Company can serve as trustee for delegated trusts. When serving as trustee of a delegated trust, Peak is responsible for appointing a non-trustee investment advisor to manage the investment of trust assets. As trustee, Peak retains control over distribution activities and will perform all necessary distribution duties.
Delegated trusts are generally existing trust documents that do not contain indemnification or bifurcation language that allows for the separation of responsibility. With a delegated trust, Peak delegates the management of trust assets to an investment advisor. Such delegation is a fiduciary duty undertaken by Peak and thus it must proactively monitor the advisor’s performance according to the requirements of the trust and relative to industry standards. In a delegated trust scenario, Peak’s liability is tied to its appropriate selection and oversight of the advisor. In addition, all delegated trusts are invested pursuant to the provisions of the trust document as well as an agreed upon Investment Policy Statement with Peak as trustee and the investment advisor.
Directed versus Delegated Trusts: What’s the Difference?