What defines a discretionary advisor in trust management?

A discretionary advisor in trust management is defined by their ability to make investment decisions within the established parameters of the trust policy. This role involves discretion when choosing how to allocate trust assets, guided by the investment objectives, risk tolerances, and other specific stipulations set forth in the trust document.

This level of authority allows the advisor to react to market conditions and opportunities without seeking prior approval from the trust's beneficiaries or the trustee for each decision. By operating within the bounds of the trust policy, the discretionary advisor can effectively manage the assets to align with the trust's long-term goals while adhering to fiduciary responsibilities. This flexibility can enhance performance and adapt to changing financial landscapes, making it crucial for the effective management of trust assets.

The other options do not correctly capture the essence of a discretionary advisor's role. For instance, limiting the advisor to only advising on investment options understates their decision-making authority. Additionally, claiming that they are responsible for all fiduciary duties overlooks the shared responsibility typically held with trustees. Lastly, stating that they are not allowed to make any decisions contradicts the very definition of being a discretionary advisor.