Did you know that helping others with their financial affairs may have
independence implications for you? Keep in mind that personal
independence rules apply when you or an immediate family member
has control, authority, or other decision-making ability over
the financial interests or relationships of another person or entity,
such as through a power of attorney, as a trustee of a trust,
or as an executor of an estate.
Before becoming a trustee or executor or having power of attorney
over another’s financial affairs, you must consider the independence
implications of all the financial interests held through that designation.
Even if you are not exercising your right to make decisions about
another person’s financial interests, independence rules still apply
if you have the ability to do so. If there are restricted financial
interests, you will need to dispose of them as soon as possible,
but no later than 30 days of having both knowledge of the restricted
investment and the ability to dispose of them.
Be sure to update KICS with the investments held by the estates,
trusts, or other intermediary within 14 days of the trustee, executor,
or power of attorney designation taking effect. And timely enroll
and activate in Broker Import, certain trust and estate accounts
if you or your immediate family member is also a beneficiary of a
trust or estate, whether or not you are actively monitoring
or trading in the accounts.
If someone has designated you or an immediate family member
as a future trustee, executor, or conditional or substitute power
of attorney—meaning you only have control over assets when certain
conditions are met, your independence is not yet affected.
Once you or your immediate family member actually serves in that role,
you are deemed to have control and the independence policies apply
to those financial interests. It is your responsibility to ensure
compliance with the personal independence rules at that time.