Directed Trusts

Traditionally, a trustee is responsible for all areas of trust management and administration, including:

  • Investments
  • Distributions
  • Ministerial Matters

Modern trust laws, however, let people who create trusts divide responsibility for these functions among multiple parties, whose liability for each other's actions is strictly limited.  This type of divided trusteeship is called a directed trust: a party, often called a trust director or trust advisor, has the power to direct the trustee in performing certain functions spelled out in the trust instrument, and the trustee must comply.  

<span style="text-decoration: underline;" data-mce-style="text-decoration: underline;">Directed Trusts</span>

Directed Trusts

People who create directed trusts can involve in trust administration the advisors and professionals they think will best meet their beneficiaries' needs.  Directed trusts can work well if you have:

  • An independent registered investment adviser you trust, and you want that adviser to manage your trust's assets after your incapacity or death
  • A family business or closely-held entity that is managed by a family member
  • A family farm or ranch that is operated by a family member
  • Family or friends who know your beneficiaries well and you want them to make distribution decisions

Trail Ridge Trust Company

Trail Ridge Trust Company, LLC, a Wyoming trust company, is uniquely positioned to consult with you and your estate planning attorney if you want to create a directed trust, and is pleased to serve as either a directed trustee or trust director/advisor.*  We would welcome your call to discuss how a directed trust may be right for your situation.

*Trail Ridge Trust Company, LLC, evaluates each fiduciary appointment and decides case-by-case whether it will serve as a directed trustee or trust director/advisor.

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