14-10901. Prudent investor rule A. Except as provided in subsection B, a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule requirements of this article. B. The prudent investor rule is a default rule and may be expanded, restricted, eliminated or […]
14-10902. 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 and […]
14-10903. 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.
14-10904. 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 circumstances […]
14-10905. Reviewing compliance Compliance with this article is determined in light of the facts and circumstances existing at the time of a trustee’s decision or action and not by hindsight.
14-10906. Prudent investor rule; language to invoke standard 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 article: 1. Investments permissible by law for investment of trust funds. 2. Legal investments. 3. Authorized investments. 4. Using the judgment and […]
14-10907. Delegation of investment and management functions; duties; limitations A. A fiduciary may delegate investment and management functions that a prudent investor of comparable skills might delegate under the circumstances. B. A fiduciary is not responsible for the investment decisions or actions of the investment agent to which the investment functions are delegated if the […]
14-10908. Life insurance on settlor; liability of trustee A trustee may acquire or retain a contract of life insurance on the life of the settlor or the settlor’s spouse, or both, without liability for a loss arising from the trustee’s failure to: 1. Determine whether the contract is or remains a proper investment. 2. Investigate […]
14-10909. Application to existing trusts A. This article applies to trusts existing on and created after July 20, 1996. B. As applied to trusts existing on July 20, 1996, this article governs only decisions or actions occurring after that date.
