700.1501 Short title of part; definitions. Sec. 1501. (1) This part shall be known and may be cited as the “Michigan prudent investor rule”. This part prescribes the Michigan prudent investor rule. (2) As used in this part: (a) “Governing instrument” includes, but is not limited to, a court order. (b) “Portfolio” means all property […]
700.1502 Prudent investor rule. Sec. 1502. (1) A fiduciary shall invest and manage assets held in a fiduciary capacity as a prudent investor would, taking into account the purposes, terms, distribution requirements expressed in the governing instrument, and other circumstances of the fiduciary estate. To satisfy this standard, the fiduciary must exercise reasonable care, skill, […]
700.1503 Portfolio strategy; risk and return objectives. Sec. 1503. (1) A fiduciary’s investment and management decisions with respect to individual assets shall be evaluated not in isolation, but rather in the context of the fiduciary estate portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably […]
700.1504 Diversification. Sec. 1504. A fiduciary shall diversify the investments of a fiduciary estate unless the fiduciary reasonably determines that, because of special circumstances, the purposes of the fiduciary estate are better served without diversifying. History: 1998, Act 386, Eff. Apr. 1, 2000 Popular Name: EPIC
700.1505 Duties at inception. Sec. 1505. Within a reasonable time after accepting appointment as a fiduciary or receiving fiduciary assets, a fiduciary shall review the assets, and make and implement decisions concerning the retention and disposition of assets, in order to bring the fiduciary portfolio into compliance with the purposes, terms, distribution requirements expressed in […]
700.1506 Duties of fiduciary in interest of beneficiaries. Sec. 1506. A fiduciary shall invest and manage fiduciary assets solely in the interest of the beneficiaries. History: 1998, Act 386, Eff. Apr. 1, 2000 Popular Name: EPIC
700.1507 Impartiality. Sec. 1507. If a fiduciary estate has 2 or more beneficiaries, the fiduciary shall act impartially in investing, managing, and distributing the fiduciary assets, and shall take into account any differing interests of the beneficiaries. History: 1998, Act 386, Eff. Apr. 1, 2000 ;– Am. 2009, Act 46, Eff. Apr. 1, 2010 Popular […]
700.1508 Investment costs. Sec. 1508. In investing and managing fiduciary assets, a fiduciary may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the fiduciary estate, and the skills of the fiduciary. History: 1998, Act 386, Eff. Apr. 1, 2000 Popular Name: EPIC
700.1509 Reviewing compliance. Sec. 1509. Compliance with the prudent investor rule is determined in light of the facts and circumstances that exist at the time of a fiduciary’s decision or action, and not by hindsight. The prudent investor rule requires a standard of conduct, not outcome or performance. History: 1998, Act 386, Eff. Apr. 1, […]
700.1510 Delegation of investment and management functions. Sec. 1510. (1) A fiduciary may delegate investment and management functions provided that the fiduciary exercises reasonable care, skill, and caution in all of the following: (a) Selecting an agent. (b) Establishing the scope and terms of the delegation, consistent with the purposes and terms of the governing […]
700.1511 Language invoking standard of prudent investor rule. Sec. 1511. The following terms or similar language in a governing instrument, unless otherwise limited or modified, authorize any investment or strategy permitted under the Michigan prudent investor rule: (a) “Investments permissible by law for investment of trust funds”. (b) “Legal investments”. (c) “Authorized investments”. (d) “Using […]
700.1512 Application to existing fiduciary estates. Sec. 1512. The Michigan prudent investor rule applies to a fiduciary estate that exists on or is created after this act’s effective date. As applied to a fiduciary estate that exists on this act’s effective date, the Michigan prudent investor rule governs only a decision or action that occurs […]
