DISCLOSURE STATEMENT

Regarding the Role of Strategic Fiduciary Consultants LLC as Trust Protector

This Disclosure Statement is made by Strategic Fiduciary Consultants LLC (“the Firm”) to clarify the scope and limitations of its role when serving as a Trust Protector.

1. Clear Identification of Role

  • We act as trust protectors (or advisors as defined under Texas Trust Code § 114.0031) with specifically defined powers outlined in individual trust agreements.

  • Our role is that of a trust protector, providing oversight and specific actions as authorized by the trust document.

2. Non-Fiduciary Status

  • The Firm explicitly does not act as a fiduciary in its capacity as Trust Protector, and will only act under a power granted in the trust document as Trust Protector to the limited extent that the trust document grants the power to remove a trustee. We do not undertake any fiduciary duties beyond those specifically granted in the trust document. Texas Trust Code § 114.0031(e) states that if a person is given authority to direct, consent to, or disapprove a trustee’s decisions, that person is an advisor and a fiduciary, UNLESS “the advisor’s only power is to remove and appoint trustees…” In such a case, the trust terms may provide that the advisor acts in a nonfiduciary capacity. The Firm’s services are intended to provide a resource to the trust and its beneficiaries, not to assume the responsibilities of a fiduciary.

  • We are not trustees and do not hold legal title to trust assets.

  • We do not manage or administer trust assets directly. That responsibility lies with the appointed trustee(s).

  • We do not have the general powers and responsibilities of a trustee under Texas law.

3. Declination of Fiduciary Roles

The Firm will decline to serve as a Trust Protector in any instance where, under the terms of the trust agreement or applicable law, it would be deemed to be acting in a fiduciary capacity beyond the limited power to remove a trustee.

4. Limitation on Discretionary Authority over Assets

  • Any authority we exercise is limited to the specific powers granted to us in the trust agreement and does not involve the day-to-day management or discretionary control over trust funds or property, unless explicitly stated and legally permissible within the bounds of not requiring trust powers.

  • Our actions are generally triggered by specific events or are in response to the trustee’s administration, in accordance with the trust document.

5. Focus on Oversight and Specific Powers

  • Our services may include, when specifically authorized by the trust: the power to remove and appoint trustees, review of trust documents or statements, or provide input on trust distributions (without direct control).

  • We act as a safeguard to ensure the trust operates according to the settlor’s intent and the beneficiaries’ best interests, within the confines of our defined powers.

6. No Guarantee of Specific Outcomes

While we provide a resource to the trust and its beneficiaries, we cannot guarantee specific financial outcomes or investment performance of the trust.

7. Adherence to Obligations

Our actions will always be guided by the terms of the trust agreement and our obligations within those terms.

8. Transparency and Communication

We are committed to transparency in our actions as trust protector, in accordance with the trust agreement and applicable law.

9. No Legal or Financial Advice

We do not provide legal or financial advice. Clients should consult with their own legal and financial advisors for matters related to trust creation, interpretation, and financial planning.

10. Statement of Compliance with Texas Law

We operate in a manner that we believe is fully compliant with the Texas Trust Code and the Texas Finance Code, and we do not engage in activities that would require us to hold trust powers as defined by Texas law.

11. Importance of the Trust Document

The specific powers and limitations of our role as trust protector are detailed in the individual trust agreement. Please refer to that document for a complete understanding of our authority.

12. Acknowledgment

By engaging the services of the Firm, all parties, including settlors, trustees, and beneficiaries, acknowledge and agree to the terms of this Disclosure Statement.

Strategic Fiduciary Consultants LLC

Date: March 17, 2025