Peter Pearman and Grace Quinn of Conyers, have made available for download his article, “Is their wish your command? Thoughts for trustees and settlers on letters of wishes,” published on JDSUPRA. The abstract begins as follows:
It is common practice when a trust is established for the economic settlor to provide a letter of wishes, addressed to the trustees of the trust, setting out their wishes with respect to the administration of the trust. For the trustees, such letters are often a valuable insight into the rationale for the establishment of the trust, how the trust assets are to be utilised and other background information about the family of the settlor and/or beneficiaries.
Some settlors take the opportunity to set out prescriptive ‘rules’ about how the trust is to be managed, identifying assets that should remain in the family, particular investment guidelines and outlining when and to whom income and capital should be distributed. Some settlors take a more ‘hands off’ and principle based approach leaving the detail to the trustee to determine how the trust assets are invested and how they are distributed.
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal