The Primary Responsibilities of a Trustee

Vogel Consulting is an independent multifamily office offering an integrated approach to wealth management. Vogel Consulting provides a full suite of family office solutions in investment advice, tax and accounting, business consulting, and estate planning.

One of the roles of a family office is to work with and guide trustees in making the right decisions toward trust assets. An individual or firm given control and legal obligation to manage assets on behalf of the beneficiaries, a trustee is appointed by the trustor (the person who created the trust) or by court order. Primary responsibilities of a trustee include administration, investment, and distribution of trust assets. 

Administering trust assets can require a comprehensive knowledge of tax and fiduciary rules as well as securities management and real estate. The trustee maintains records, files tax returns and reports periodically to the beneficiaries. The trustee must segregate the trust assets from his or her property to avoid any disputes or liabilities in case of loss.

A trustee also is responsible for making prudent decisions when acquiring, investing, and selling assets so they remain profitable for the beneficiaries. When distributing assets, the trustee must be impartial and act in accordance with the terms of the trust. The beneficiaries cannot dictate the terms of the trust, nor can they persuade the trustee to change the terms.

Developing and Implementing an Education Curriculum for Families

Vogel Consulting offers a wide array of wealth management services for family offices. However, for families to get the most out of these services, they must understand what is being offered. Vogel Consulting combines wealth management services with family education to broaden the knowledge and thinking of family member clients.

In many cases, families that need independent family office assistance have members with varied levels of understanding of technical finance and management concepts. If this imbalance is not addressed at the gate, some family members will feel left out. This is why Vogel’s team develops unique education curricula for the families it works with - to bring everyone on the same page.

The family education curriculum covers concepts such as tax and estate planning, implementation of dynasty trusts, management shifts to nonfamily executives, and redrafting stock redemption plans. The lessons are carried out during family meetings, in small group-specific sessions, or during individual coaching sessions.

Basic concepts are taught first and then layers of complexity are added depending on the progress of family members. Complex concepts are taught more than once to ensure every family member understands them. The lessons are held informally, creating an interactive and open atmosphere for asking questions. As a result of this educational curriculum, family members feel more confident discussing financial matters and meetings and decision making become more productive.