The video discusses the differences between delegated and directed trust. It’s aimed at people who would like more information about trusts so that they can make decisions for their loved ones.
One of the main differences between a directed trust and a delegated trust is who carries out and executes specific actions. A third party or “director” directs the trustee in what steps to take with the account in a directed trust. You can still retain control of your account, but you’ll have an advisor who can give you tips and advice on certain moves you should make.
You can then decide whether to take the advice or not.
Delegated trusts allow you to assign someone else the responsibility of handling your trust. This person is the trustee, and you should trust that person fully to manage the affairs with your account.
Responsibility varies between delegated and directed accounts. In a traditional delegated trust, the trustee is responsible if anything goes wrong with the account because of recklessness, negligence, or misconduct. In a delegated trust, pinpointing a single responsible party might be difficult. The trustee and the financial advisor might both be held accountable if something goes severely wrong with it.
