N001493
hursday, January 10, 2002 10:01 AM
How to assist victims' families in managing & safeguarding
award s
Sirs:
I appreciate the magnitude of the task of the Special Master in not
only setting a fair award in each case but also as to how to distribute the
award prudently and not see it squandered away by a family or by advisors.
I am an attorney who has spent his professional life in the
fiduciary management field - overseeing the administration & investment of
trusts & estates. I have also had the privilege to chair discretionary
distribution committees at bank trust companies whose main task is to
review and decide on the distribution of Trust principal/income f/b/o a
beneficiary in keeping with the terms of the governing instrument and the
perceived intent of the creator of the Trust. It has become clear over the
years that one of the best ways to fulfill our obligation to a particular
beneficiary and other parties interested in a particular Trust is to
directly pay a service provider (mortgage co., telephone, educational
institution, etc.) rather than deliver substantial funds to a particular
beneficiary. We thereby fulfill our duty as prudent stewards of the funds
and at the same time provide emergency funds for the individual
beneficiary/family. There must be some sophisticated computer programs
which could assist in the proper management of your payment obligation. I
know that the Salvation Army has had some serious problems with such a
system but it appears that they did not set up systems with the proper scale
for the task. The job is large but not impossible.
As a taxpayer, I applaud the legislation creating what amounts to
our moral & human response to our fellow citizens' financial crisis. But we
must be careful stewards and not deliver millions of dollars to families
unequipped to manage the funds for the long term.
Good Luck,
Individual Comment