Document Description: All trust agreements contain clauses that outline what the permitted investments are for the trust. Many also contain schedules that define for example, what the credit rating of any bond investment must be or what equity markets the trust can invest in. Sometimes these clauses contain prohibitions and identify specific types of investments that cannot be held in the trust. An example of investments that are often prohibited are direct investments in First Nation business or land. In a trust, the Trustees have the power and the duty to invest the trust property so it is prudent and necessary for the trust document to provide some guidelines. In fact a trust agreement that did not include them would be considered incomplete. As a result we know we have to have them but the challenge is to figure out what should be in them.
Keywords:
Category: Trust
Document language: English
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