How Supplemental Needs Trust Funds are Invested
Beneficiaries and their trust representatives can rely on the Alabama Family Trust staff when they have questions about how trust funds can be used.  When they have questions about how trust funds are invested, they can reach out to our investment partner, Warren Averett Asset Management.

 In 2018, Alabama Family Trust’s board of trustees selected Warren Averett Asset Management to invest trust funds. Warren Averett is ranked as one of the Top 50 Fee-Only Wealth Management Firms in the US by CNBC.  Four of its seven offices are located in Alabama, and its 50+ advisors advise on $2.6 billion in assets. 
Alabama Family Trust Investment Objectives & Risk Tolerance Questionnaire
When setting up a new trust, each trust representative completes an in-depth investment objectives and risk assessment questionnaire which serves as a guide for the trust representative to select investment options with Warren Averett Asset Management.  The goal is to identify the investment objectives and risk parameters for each beneficiary’s unique situation. The questionnaire introduces these topics:
Requirements for investment income – In many cases, trust income needs to be invested in a way to be readily available to meet a beneficiary’s immediate daily expenses.  Other beneficiaries may have enough funds for near-term expenses but need an investment plan that focuses on long-term growth.

Investment strategy goal – Some trust representatives require full liquidity for immediate use without regard for inflation.  Others are looking to increase the funds in the trust by investing to gain higher than average returns.  It helps if the trust representative has some financial acumen.

Investment objective – Trust representatives are asked about the needs for income, capital appreciation, and the risk tolerance or volatility that they can handle.  This factor has been especially important during 2020’s market volatility due to the pandemic.

Timeline for the trust –Trust representatives can thoughtfully consider the difference in investment goals whether they expect a 1- to 3-year or a decade(s)-long timeline. The longer the timeline, the impact of market volatility decreases. 

Investment Options
Based on the score from the questionnaire, Warren Averett can discuss which of several investment options might be best for a specific beneficiary’s trust.  The options range from Warren Averett funds which are focused on income, conservative, balanced, growth or pure growth investment as well as two Vanguard LifeStrategy funds.
Reports on Investments
A Warren Averett report on Alabama Family Trust funds in aggregate is posted on Alabama Family Trust’s Documents webpage each month, and individual trust reports are provided monthly to the trust representatives.

The partnership between Warren Averett Asset Management and Alabama Family Trust sets up a great team for supplemental needs trusts.  The funds are invested according to the trust representatives’ request and the funds are then spent to augment the lives of disabled trust beneficiaries by funding more services and items than supported by Alabama Medicaid and other means-tested government benefits. 

For more information, visit
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Direct: 205-313-3915  |   Toll-free: 1-844-238-4630
2820 Columbiana Road, Suite 103 Vestavia Hills, AL 35216

The Alabama Family Trust staff is working remotely due to the pandemic, but we are available with only a phone call or email.

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