“Robo Investing” For Trusts
Robo Investing, also known as Robot Investing, refers to automated programs that dispense with the human advisor element and instead allow you to input information about your goals to reach a recommended investment program.
Can a Trustee use one of these programs to structure the Trust's investment portfolio? Probably yes.
A Trustee is tasked with knowing the purpose of the Trust, including the time horizon and expected cash requirements. The Trustee must also know the needs of the beneficiaries. Assuming the Trustee has that information in hand, she should be able to respond to questions in the automated program. As long as the Trustee remembers she is answering questions on behalf of the Trust, its current and future beneficiaries, and not an individual, then the resulting recommendation should be helpful in constructing the portfolio.
Remember, even if the Trustee is using a human investment advisor, the Trustee will have to task that advisor with finding an appropriate portfolio recommendation appropriate for the Trust and its beneficiaries.
Every good estate plan deserves great administration.
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