Expert Guide: Strategic Trust Asset Management for Optimal Growth and Compliance

A Comprehensive Guide to Trust Asset Management

Date: April 19, 2024

By Judson Embree, CTFA, Investment Advisor at Bryn Mawr Trust

Managing trust assets requires a multifaceted approach that combines strategic asset allocation, fulfilling fiduciary duties, risk management, and understanding tax implications. A trustee's responsibility is to navigate the complexities of managing investments while aligning them with the trust's objectives and beneficiaries' needs.

Strategic Asset Allocation

The foundation for effective trust management lies in strategic asset allocationa process involving the division of investments across various categories like stocks, bonds, real estate, and cash. The m is to balance risk and reward according to the trust's goals, timeline, and tolerance levels. Deping on circumstances, considerations include asset location strategies such as placing a municipal bond versus a taxable one or prioritizing equity investments for capital appreciation.

Fiduciary Responsibilities

Trustees must strike a careful balance between financial objectives and legalethical obligations towards beneficiaries. This involves proactive decision-making while considering economic conditions and liquidity needs. Adhering to fiduciary duties entls managing investments responsibly, complying with laws and regulations, and aligning portfolio management with the trust's terms.

Diversification

Diversifying trust assets is a fundamental principle serving as a risk management strategy that safeguards long-term sustnability and growth goals. Unlike individual investment accounts where higher risks may be taken for potentially greater returns, trustee considerations focus on balanced approaches to protect beneficiary interests.

Tax Implications

Understanding tax implications is crucial in managing trust assets effectively. considering how various investments are taxed and optimizing strategies based on tax rules applicable to the jurisdiction of operation.

Navigating these complexities requires an understanding of both the financial and legal aspects impacting trust asset management. This guide provide insights into making informed decisions when overseeing trust portfolios, ensuring they align with beneficiaries' needs while upholding fiduciary responsibilities.

Judson Embree, CTFA

Investment Advisor at Bryn Mawr Trust

Bryn Mawr Trust is a division of WSFS Bank and part of WSFS Financial Corporation.

WSFS Bank, Member FDIC dba Bryn Mawr Trust.

Bryn Mawr Trust is a trademark of WSFS Bank.

Products and services are offered through WSFS Financial Corporation subsidiaries. WSFS Bank offers securities and advisory services via Commonwealth Financial Network, Member FINRASIPC. WSFS Bank and WSFS Wealth Investments are distinct entities. Insurance products are not FDIC-insured or deposits or other obligations of the bank. They may go down in value.

Investments: Not a deposit, not FDIC insured, no bank guarantee, may lose value.

WSFS Bank dba Bryn Mawr Trust and its affiliates, subsidiaries, and vors do not offer legal, tax, or accounting advice. Seek professional guidance tlored to your specific situation from these professionals before making any financial decisions.

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Products and services are provided through WSFS Financial Corporation entities including WSFS Bank and WSFS Wealth Investments.

*WSFS Financial Corporation NMLS #417673

Legal :

Third-party trademarks used herein for discussion purposes only and do not indicate commercial relationships with the referenced organizations or their products or services.

The opinions expressed by associates on various media platforms are solely their own personal views, which may differ from those of Bryn Mawr Trust. Opinions provided are based on information deemed reliable at the time shared but cannot guarantee completeness or accuracy due to potential changes in circumstances.

WSFS Bank and its subsidiaries do not guarantee any specific outcomes, profits, or performance for investments discussed by associates. Always consider your personal financial situation before acting on investment advice and seek guidance from your own financial professional.

Risk Warning:

Investments are subject to risks including possible loss of principal value.
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