§ 901. Prudent investor rule
§ 901. Prudent investor rule (a) Except as otherwise provided in subsection (b) of this section, a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this chapter. (b) The prudent investor rule, a default rule, may be […]
§ 902. Standard of care; portfolio strategy; risk and return objectives
§ 902. Standard of care; portfolio strategy; risk and return objectives (a) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. (b) A trustee’s investment […]
§ 903. Diversification
§ 903. Diversification A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying. (Added 2009, No. 20, § 1.)
§ 904. Duties at inception of trusteeship
§ 904. Duties at inception of trusteeship Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other […]
§ 905. Reviewing compliance
§ 905. Reviewing compliance Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee’s decision or action and not by hindsight. (Added 2009, No. 20, § 1.)
§ 906. Language invoking standard of this chapter
§ 906. Language invoking standard of this chapter The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this chapter: “investments permissible by law for investment of trust funds,” “legal investments,” “authorized investments,” “using the judgment and care under the circumstances […]
§ 907. Total return unitrusts
§ 907. Total return unitrusts (a) In this section: (1) “Disinterested person” means a person who is not a “related or subordinate party” (as defined in Section 672(c) of the Internal Revenue Code of 1986, as in effect on the effective date of this title (referred to in this section as the “I.R.C.”)) with respect […]
§ 908. Express total return unitrusts
§ 908. Express total return unitrusts (a) The following provisions shall apply to a trust that, by its governing instrument, requires or permits the distribution, at least annually, of a unitrust amount equal to a fixed percentage of not less than three nor more than five percent per year of the fair market value of […]
§ 1001. Remedies for breach of trust
§ 1001. Remedies for breach of trust (a) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. (b) To remedy a breach of trust that has occurred or may occur, the Probate Division of the Superior Court may: (1) compel the trustee to perform the […]
§ 1002. Damages for breach of trust
§ 1002. Damages for breach of trust (a) A trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of: (1) the amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or (2) the […]