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Simple English definitions for legal terms

investment-direction agreement

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A quick definition of investment-direction agreement:

An investment-direction agreement is a contract between a trustee and a beneficiary. The agreement states that the trustee will not spread out the trust's money into different investments, even though they have the legal right to do so. The beneficiary agrees to not hold the trustee responsible for any losses that may happen because of this decision. This agreement is often abbreviated as IDA.

A more thorough explanation:

An investment-direction agreement is a legal contract between a trustee and a beneficiary of a trust. The agreement allows the beneficiary to direct the trustee on how to invest the trust's assets. The trustee agrees to follow the beneficiary's investment instructions, even if it goes against the trustee's legal obligation to diversify the trust's assets. In return, the beneficiary agrees to hold the trustee harmless for any losses resulting from not diversifying.

John is the beneficiary of a trust that holds $1 million in assets. He believes that investing all the money in a single stock will yield the highest return. However, the trustee is legally obligated to diversify the trust's assets to minimize risk. To achieve his investment goals, John enters into an investment-direction agreement with the trustee. The agreement allows John to direct the trustee to invest all the trust's assets in a single stock. In return, John agrees to hold the trustee harmless for any losses resulting from not diversifying.

Another example could be a beneficiary who wants to invest in a specific industry or sector, such as technology or healthcare. The investment-direction agreement allows the beneficiary to direct the trustee to invest in companies within that industry or sector, even if it goes against the trustee's legal obligation to diversify.

These examples illustrate how an investment-direction agreement can give beneficiaries more control over how their trust's assets are invested, even if it goes against traditional investment strategies.

investment contract | investment discretion

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HopefullyInLawSchool
16:06
it means you will not be rejected today and may be accepted or WL in the future
Just got my Michigan rejection
BookwormBroker
16:10
same
RoaldDahl
16:10
@HopefullyInLawSchool: what if i already got rejected. does it mean anything
HopefullyInLawSchool
16:12
@RoaldDahl: Likely not however it could mean nothing
RoaldDahl
16:15
So if it means nothing does that mean something?
HopefullyInLawSchool
16:17
Possibly
RoaldDahl
16:26
Cool
RoaldDahl
16:26
thank you!!!! i hope it means something
pinkandblue
16:31
fart
IrishDinosaur
16:36
Mich R gang lesgooo
Did anyone else get that random get to know nova email?
HopefullyInLawSchool
17:21
Ya it was sent to all YM applicants
starfishies
17:37
Anyone get the NDLS email inviting you to apply for something even though they haven’t made a decision on your app yet
17:38
Better yet I got the email and I was rejected last month
starfishies
17:38
Wtf
starfishies
17:39
and the deadline is in like a week what is this
any cardozo movement?
BatmanBeyond
18:01
Sent a LOCI via portal, but I'm wondering if email would have gotten me a swifter response
BatmanBeyond
18:02
This whole hold/wait-list/reserve system is a headache
loci already?
BatmanBeyond
18:09
If the odds are like 1-2% I don't think it matters much by the numbers
12:11
I got the same NDLS email
OrangeThing
12:18
I think the user profiles are broken
19:29
Any word out of Notre Dame?
19:29
Only the invitation to apply for LSE
19:29
Anyone received a decision from NDLS?
19:50
when did u guys apply that just heard from umich? they havent even glanced at my app yet
0:30
how am i supposed to spy on people when profile links are broken?
Right. Broken links smh
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