Trusts and Estates

Ca. Trs. & Estates Quarterly VOLUME 30, ISSUE 2, 2024

MCLE SELF-STUDY ARTICLE DRAFTING TRUSTS FOR SUSTAINABLE INVESTING IN CALIFORNIA

Written by Bryan Kirk, Esq.* and Anna Soliman, Esq.**

I. SYNOPSIS

As an umbrella term, sustainable investing refers to investment strategies informed by both financial and non-financial concerns. The concerns may be value-based and draw on an investor’s moral, political, or religious views. The concerns may also be tied to an investor’s environmental, social, or governance issues.

Whatever the source, in the context of trust drafting, sustainable investing presents the challenge of maneuvering a concern that trust law generally does not consider within the tangle of a trustee’s fiduciary duties. This article aims to tackle some of those issues, focusing on potential drafting for trust instruments, beneficiary consents and releases, and investment policy statements.

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