For example, an investment advisor could focus on the trust’s investments. If you have complicated investments, it might be a good role for a trusted financial advisor. In the case of a family business, you may want family members to have a say or want an objective non-family member to assess the family’s needs. A distribution advisor would be responsible for making distributions to the beneficiaries. This might be especially useful if you want a family member to be able to make decisions about a child with special needs. Or you might even want a committee of family members to decide how to make distributions in order to make distributions based on the needs of the beneficiaries.
Both the trustee and the advisor are considered fiduciaries, which means they must act in the beneficiary’s best interest. While the trust document sets out the responsibilities of each party, if you are creating a directed trust, it is also a good idea to write a statement of intent that explains what you want the roles of the trustee and the advisor to be.
Directed trusts are very complicated and require careful planning. If you are thinking about a directed trust, consult your attorney.