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Posted

I have a large Plan that has 4 individual Trustees on the Plan Document. The Investment company has set up their own Trust Agreement since they are the directed Trustee. Does the Investment company need to be added to the Plan Document as a Trustee or do we just use the separate Trust Agreement that the Investment Company used? If the Investment Company is the Trustee would I even have the other 4 individuals as Trustees?

Posted

If I was one of the four individuals named as 'trustees' of the plan in its document, but the investment company is the trustee not only per its separate trust agreement but in practice, then I'd want the plan document amended to remove me as a 'trustee'. I see no advantage (only potential liability) to being a 'trustee in name only'.

Also, the plan document and the separate trust agreement should be amended to the extent to be consistent one with the other, including the plan document's reference to whom is the trustee.

John Simmons

johnsimmonslaw@gmail.com

Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.

Posted

Sounds to me like the investment company is more a custodian than an actual trustee.

JanetM CPA, MBA

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