ROLES AND RESPONSIBILITIES OF BENEFICIARIES Each beneficiary has an…

ROLES AND RESPONSIBILITIES OF BENEFICIARIES Each beneficiary has an obligation to educate himself or herself about the du ties of a beneficiary, as well as the duties of the family trustees, Here are specific responsibilities of beneficiaries, -To gain a clear comprehension of each trust in which the beneficiary has an interest and a specific understanding of the mission statement for each trust as prepared by the trustees. -To educate himself or herself about all trustee responsibilities . -To understand the trustee's responsibility to maintain the purchasing power of the trust's capital while maintaining a reasonable distribution rate for the income beneficiaries. -To have a general understanding of modern portfolio theory and the formation and process of asset allocation. -To recognize and look for proof that each trustee represents all beneficiaries -To meet with each trustee once each year to discuss his or her personal financial circumstances and personal goals and to advise the trustee of his or her assessment of the trustee's performance of the trustee roles and responsibilities to the trust, to the beneficiary, and to family governance. -To become knowledgeable about the functions and importance of each element of the family's trust governance structure. -To attend the annual family business meeting and to accept responsible roles within the family governance structure, based on his or her qualifications for such roles. -To develop a general capacity to understand fiduciary accounting. -To demonstrate a willingness to participate in educational sessions and to become financially literate (through family seminars and family-funded edu-cational programs). -To know how and in what amount trustees and other professionals are com pensated and to obtain a general understanding of the budgets for the trust and investment entities in which the trust will be invested.

— from True North (Ethics, Integrity, Truth, Values) · Complete Family Wealth by James E Hughes Jr., Susan E. Massenzio, and Keith Whitaker

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