An elderly client has been a long-time client of Joe, who is an IAR. The elderly client has a trust account for his children and decides to name Joe as the trustee via his will, once he passes away. Joe is to oversee and manage the investments of the trust at his discretion once the elderly client passes away. When the elderly client passes away and Joe is trustee, which of the following are correct?
I.Joe would be considered a fiduciary for the trust account.II.Joe would be considered an agent who would receive commissions related to trades in the trust account.III.Joe would be considered a beneficiary of the trust account.IV.Joe would be considered to have a certain level of discretionary authority over the trust account and would have custody of trust account funds as trustee.

IV) Joe would be considered to have a certain level of discretionary authority over the trust account and would have custody of trust account funds as trustee.

Explanation:

Since the client named Joe as his trustee, once the client passes away Joe will be in charge of managing the trust account. Since Joe must place the interests of the beneficiaries (the client's children) ahead of his own interests, Joe is considered a fiduciary for the trust account.

Joe is also in charge of managing the investments, therefore he will have discretionary authority over them. Since Joe is the trustee, he has control of the money and he can also have custody of the funds.