Building the bridge
There is little doubt: Sustainable investing is on the rise.
With funds in the universe continuing to multiply and attract record inflows, the cohort of investors seeking to align their portfolios with their values is clearly expanding and on track to permanently transform the investment landscape.
But one category of investors remains on the sidelines: trustees of personal trusts. Despite modern trust laws in a growing number of states, which permit trustees to consider sustainable investing factors, many trustees may still presume that sustainable investing is inconsistent with their fiduciary duties.
It is no surprise then that we increasingly find ourselves helping sustainably inclined trust clients navigate this dilemma. For grantors, the solution is relatively straightforward: They can draft provisions into their trusts that expressly allow sustainable investments. For beneficiaries of trusts that lack this language, another rising trend provides a promising path forward: family values statements.
To help grantors, beneficiaries and trustees alike, this whitepaper discusses these statements and their usefulness in bridging sustainable preferences with fiduciary duties.
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