My parents created a Charitable Remainder Unitrustfor me in 2006 with 500k with a local university as trustee. The trustees printed a projection showing that the trust principal would be worth $719k in 2019. Funds in 2019 are worth 499k and my quarterly distribution is much lower than it was in 2006.
Actually it's only 476k now.
John
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Based on the timing of economic events, your trustee is most likely honest.
Your trust was formed 2 years before the housing/banking/investment collapse of 2008. A number of large investment banks and brokerage firms were bailed out by the government, while still others went out of business entirely. The recession following that collapse was the worst since the Great Depression of the 1930s.
If you look at your statements since the trust was founded, you will probably find a major dip in value around September, 2008. That would be followed by a slow increase in value beginning around 2011.
lucy
In 2008/2009 we had a recession. I remember since our accounts dropped a lot in value. I remember my (late) husband being obsessed with the stock market everyday, since it went as low to 10,000 to 12,000 points? Now today the stock market is booming, but we never got back what we lost 10 years ago.
So in 2009, we changed from Edward Jones a broker to a financial advisor which now has increased in value. The difference is that Edward Jones broker, invested in what made our broker more money. A real financial advisor is a "fudiciary" interest that they must look after the client.
You should have gotten statements every year. The problem is that many people ignore them, or like back in 2009, many of us did not want to see how much we (lost) due to the recession, just like our IRA's etc.
My suggestion is to have this fund looked at by a professional to see if they are invested in the "right" funds, or in high risk, that can gain/lose a lot based on the economy.
linkus86
Probably not. The economy of 2006 suffered a huge blow in subsequent years as a result of the bursting housing bubble (globally), offsetting most everyone's projections.
You can demand to see the books of the trust to make sure the trust is being properly managed.
Anonymous
I would ask for all records, and a CPA to do an audit. At best you just have an incompetent trustee who needs to be removed.
Anonymous
Meet with a financial advisor, such as Edward Jones, and have your finances evaluated. Something is wrong in Denmark.