What is the primary responsibility of the investment advisor in trust administration?

The primary responsibility of the investment advisor in trust administration is to make or recommend investment decisions. This role is crucial because the success of a trust's financial performance largely depends on the advisor's expertise in identifying suitable investment opportunities that align with the trust's objectives and risk tolerance. An investment advisor analyzes market conditions, evaluates potential investment options, and provides recommendations aimed at maximizing returns while managing risks within the context of the trust’s goals. This focus ensures that the trust's assets are managed effectively to benefit the beneficiaries as intended by the grantor.

While other aspects of trust administration, such as settling disputes, maintaining communication with beneficiaries, and overseeing operations, are also important, they fall outside the investment advisor's primary duties. The advisor's specialized knowledge in market conditions and investment strategies sets them apart as the key figure in making informed financial decisions for the trust.