Which item is NOT typically included in a standard trust instrument?

Which item is NOT typically included in a standard trust instrument?

• A. A personal investment policy statement.
• B. Settlor's intent, trustee designations, powers, distributions rules, beneficiaries, and duration terms.
• C. The identity of beneficiaries.
• D. The powers granted to the trustee.

Answer: (A)

A trust instrument is the legal framework that sets up how the trust operates. It normally outlines the settlor’s intent, who will serve as trustee, the powers and duties of the trustee, the rules for distributions, who the beneficiaries are, and how long the trust lasts. These elements define the structure and administration of the trust itself. A personal investment policy statement, however, is a separate planning document that guides how the trust’s assets should be invested. It describes investment goals, risk tolerance, asset allocation guidelines, and monitoring procedures. While the trustee will follow such guidance, that policy statement is not typically embedded in the trust instrument. The identity of beneficiaries and the powers granted to the trustee are typically included in the instrument, as are the other terms that govern the trust’s operation.

A trust instrument is the legal framework that sets up how the trust operates. It normally outlines the settlor’s intent, who will serve as trustee, the powers and duties of the trustee, the rules for distributions, who the beneficiaries are, and how long the trust lasts. These elements define the structure and administration of the trust itself.

A personal investment policy statement, however, is a separate planning document that guides how the trust’s assets should be invested. It describes investment goals, risk tolerance, asset allocation guidelines, and monitoring procedures. While the trustee will follow such guidance, that policy statement is not typically embedded in the trust instrument. The identity of beneficiaries and the powers granted to the trustee are typically included in the instrument, as are the other terms that govern the trust’s operation.