In the session, presenter Mary Vandenack will define directed trusts; distinguish them from traditional trustee arrangements and delegated trust structures; identify the key parties in a directed trust, including distribution advisors, investment directors, trust protectors, charitable advisors, and administrative trustees; and articulate their respective roles and responsibilities. She will analyze fiduciary duty and liability allocation among directed trust parties, including the willful misconduct standard and its variations across jurisdictions. 

Attendees will learn the presenter’s tips to draft effective directed trust provisions, including appointment clauses, scope of authority, removal and succession mechanisms, and exculpation language. The presenter will guide attendees in how to evaluate the tax implications of directed trust structures, including income tax nexus considerations and transfer tax issues, as well as offer best practices for administration, including communication protocols among fiduciaries, documentation requirements, and conflict-resolution mechanisms. Attendees will leave this session prepared to advise clients on whether a directed trust structure is appropriate for their circumstances and goals.