PRIVATE FIDUCIARY SERVICES

Since the founding of Hemenway & Barnes in 1863, we have kept a commitment to the individual client. Fiduciary service is a critical component of that commitment. Consequently, we offer our clients a distinctive blend of legal and fiduciary services, undertaking responsibility for management of client assets as trustees and executors, while also providing legal advice to our clients and their families. In the course of our work, we serve as family advisors, not only on legal and financial matters, but on a host of personal issues where our experience and judgment enable us to play a constructive role. For many families, these relationships have spanned generations. For others, the relationships have begun only recently.

PHILOSOPHY AND APPROACH
Building wealth is not an easy task. It takes hard work, ingenuity, patience, sound advice and, usually, some luck. Keeping wealth, enhancing it and ensuring that it is disposed of in a sensible, tax-advantaged way takes no less. At Hemenway & Barnes, we offer our clients an extensive array of legal, fiduciary, estate and tax planning services, all in one place. Paying careful attention to the client and the client's family is essential to what we do as lawyers and fiduciaries. Individual attention to each client from a Hemenway & Barnes partner characterizes our commitment to fiduciary service and distinguishes us from our more institutional competitors.

In managing family trust assets, we strive to enhance and to preserve the value of those assets, both in absolute dollars and in purchasing power. Achieving these investment objectives, and building a family's wealth, requires a long-term investment horizon and a commitment to common stock investing. It requires a focus on companies with growing earnings, global presence and strong balance sheets. It calls for the prudent stewardship of assets over many years, not merely on performance measured in fiscal quarters. Preserving purchasing power requires that investment income keep pace with the rate of inflation. Consequently, we seek not only capital growth, but growth of income, too. Typically, our overall investment objectives will lead us to a diversified trust investment portfolio, with appropriate investments across asset classes and industry and economic sectors, offering the prospect of substantial growth in earnings and value over the longer term.

In reviewing family assets, we look not only at the securities in a trust, but also at a family's real estate holdings, business interests, significant items of tangible personal property, insurance, retirement plan assets and the like. Where it seems appropriate, we will consider real estate investments, venture capital opportunities and other alternative investments.

WHY DO LAWYERS MAKE EFFECTIVE TRUSTEES?
Each Hemenway & Barnes lawyer who serves as a fiduciary does so in his or her individual capacity. This allows us to provide a highly personal level of fiduciary service for clients who trust our judgment and rely on our counsel. The firm itself does not serve as a fiduciary. As lawyers and as trustees, we concentrate in areas that relate directly to our fiduciary practice. These include the law of trusts, sophisticated estate and charitable planning, taxation, real estate, business planning, probate law and estate settlement. The knowledge, experience and judgment that are the hallmark of a good lawyer are equally important to the role of a private trustee and executor. In serving as professional fiduciaries, we carry on a tradition that remains an essential element of our practice at Hemenway & Barnes today.

HOW DO WE MAKE INVESTMENT DECISIONS?
As trustees, we meet weekly to review the investments in a different group of trust accounts. We typically review each account four times a year and on other occasions as necessary. Hemenway & Barnes has enlisted a number of investment advisory firms to counsel the trustees on investment matters, however the role of our outside investment advisors is just that: advisory. At Hemenway & Barnes, the trustees have final responsibility for investment decisions in the trusts under their care. For each trust investment meeting, our investment advisor provides us with an independent analysis of each account being reviewed and written recommendations of any suggested investment changes. Taking those recommendations into account, along with input derived from our other relationships, we reach our own conclusions, subject to the approval of any outside trustees.

HOW DO WE DELIVER TRUST SERVICES?
We maintain a central Trust Department, which is responsible for the safekeeping of trust assets, the collection and distribution of income, the processing of securities transactions and the maintenance of all necessary records and accounts. We provide reports to clients as they request, typically on a monthly or quarterly basis. Securities are held in the custody of Fifth Third Bank and cash balances are "swept" daily into interest-bearing accounts. We consolidate securities brokerage transactions, seeking the best execution available at a substantial discount from retail commission rates. We also consolidate bond trades to make those transactions at favorable prices.

Our Trust Department personnel prepare income tax returns for trusts and estates under our stewardship and, often, for the beneficiaries of those accounts, as well. When a client wishes, we will pay client bills, make charitable gifts, prepare employment tax returns for household employees, monitor medical insurance reimbursements, and make estimated income tax payments.

Hemenway & Barnes also offers experienced personnel to facilitate with the administration of estates. We attend to all aspects of the settlement of an estate, including supervision of probate proceedings, disposition of real estate and other assets and preparation of estate tax returns. In many cases, we are asked to serve as executors of our clients' estates and to bring to bear the knowledge of their family and financial circumstances that we have acquired over the years.

WHY Hemenway & Barnes?
The breadth and depth of services offered and the continuity of personal contact, combined with the fiduciary, legal, investment and tax knowledge and experience that we bring to the service of our clients, distinguish Hemenway & Barnes from other private fiduciary firms. We would be pleased to discuss our fiduciary services with you.