057: Understanding the Uniform Prudent Investor Act with Jeremy Lau

Sam Price sits down with Jeremy Lau of Prudent Investors to unpack what happens the moment a successor trustee inherits an investment portfolio. Most fiduciaries know they have a job to do. Few understand the Uniform Prudent Investor Act actually governs how they do it, from diversification to tax sensitivity to monitoring costs that never show up on a brokerage statement. Jeremy walks through the hidden expense ratios buried inside mutual funds, why a trading program with hundreds of tiny positions can quietly balloon trust accounting fees into the tens of thousands, and what separates a financial advisor who protects a fiduciary from one who leaves them exposed. He also breaks down risk tolerance as two distinct factors, not one, and explains why an investment policy statement matters more than most successor trustees realize. This episode hands fiduciaries a checklist they didn't know they needed. In this episode, you will hear: What a successor trustee actually inherits when a settlor passes away The Uniform Prudent Investor Act and why it applies to fiduciaries, not financial advisors Risk tolerance as two separate factors, ability and willingness, not one Hidden costs inside mutual funds and ETFs that never appear on a brokerage statement How a trading program with hundreds of tiny positions can balloon trust accounting fees Why an investment policy statement protects a fiduciary who delegates investment decisions What to look for when choosing a financial advisor to manage trust assets Resources from this Episode https://www.prudentinvestors.com The 6-Stage Probate Process: How to Navigate California Probate: https://a.co/d/82310Rw  Follow and Review: We'd love for you to follow us if you haven't yet. Click that purple '+' in the top right corner of your Apple Podcasts app. We'd love it even more if you could drop a review or 5-star rating over on Apple Podcasts. Simply select "Ratings and Reviews" and "Write a Review" then a quick line with your favorite part of the episode. It only takes a second and it helps spread the word about the podcast. Episode Credits If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com. Let them know we sent you.